N-CSRS 1 d69246.txt EV TAX-MANAGED EMERGING MARKETS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-02258 --------- Eaton Vance Series Trust II ---------------------------- (Exact Name of registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ------------------------------------------------------------------------------- (Address of Principal Executive Offices) Maureen A. Gemma The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ------------------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (registrant's Telephone Number) June 30 ------- Date of Fiscal Year End December 31, 2007 ----------------- Date of Reporting Period ------------------------------------------------------------------------------- ITEM 1. REPORTS TO STOCKHOLDERS. [logo] EATON VANCE(R) ------------------- MANAGED INVESTMENTS [graphic omitted] Semiannual Report December 31, 2007 [graphic omitted] EATON VANCE TAX-MANAGED EMERGING MARKETS FUND [graphic omitted] IMPORTANT NOTICES REGARDING PRIVACY, DELIVERY OF SHAREHOLDER DOCUMENTS, PORTFOLIO HOLDINGS, AND PROXY VOTING PRIVACY. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy ("Privacy Policy") with respect to nonpublic personal information about its customers: o Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. This may include information such as name, address, social security number, tax status, account balances and transactions. o None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer's account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker/dealers. o Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information. o We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com. Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Boston Management and Research, and Eaton Vance Distributors, Inc. In addition, our Privacy Policy only applies to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer's account (i.e., fund shares) is held in the name of a third-party financial adviser/ broker-dealer, it is likely that only such adviser's privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures. For more information about Eaton Vance's Privacy Policy, please call 1-800-262-1122. ---------------------------------- DELIVERY OF SHAREHOLDER DOCUMENTS. The Securities and Exchange Commission (the "SEC") permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called "householding" and it helps eliminate duplicate mailings to shareholders. EATON VANCE, OR YOUR FINANCIAL ADVISER, MAY HOUSEHOLD THE MAILING OF YOUR DOCUMENTS INDEFINITELY UNLESS YOU INSTRUCT EATON VANCE, OR YOUR FINANCIAL ADVISER, OTHERWISE. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial adviser. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial adviser. ---------------------------------- PORTFOLIO HOLDINGS. Each Eaton Vance Fund and its underlying Portfolio (if applicable) will file a schedule of its portfolio holdings on Form N-Q with the Securities and Exchange Commission ( the "SEC") for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC's website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC's public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room). ---------------------------------- PROXY VOTING. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds' and Portfolios' Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12 month period ended June 30, without charge, upon request, by calling 1-800-262-1122. This description is also available on the SEC's website at www.sec.gov. Eaton Vance Tax-Managed Emerging Markets Fund as of December 31, 2007 INVESTMENT UPDATE [Photo of Thomas Seto] Thomas Seto Parametric Portfolio Associates LLC [Photo of David Stein] David Stein, Ph.D. Parametric Portfolio Associates LLC Economic and Market Conditions ------------------------------------------------------------------------------- o During the six months ended December 31, 2007, emerging markets stocks posted solid returns after several years of very strong performance. This performance occurred in an environment of significant volatility. Troubles with subprime mortgages in the U.S. led to a significant downturn in the U.S. housing market and contributed to a global credit crunch. Record high prices for crude oil also contributed to concerns about inflation and global economic slowing. Most of the world was affected by the U.S. subprime mortgage-led credit crisis, as the cost of capital increased around the globe and investors fled riskier assets. Emerging market stock performance rebounded from an August 2007 sell-off to reach new highs in October 2007, only to decline again in November and December 2007. o Among the larger weightings in the Fund's primary benchmark, the S&P International Finance Corp. Investable Emerging Markets Index (the "Index"), strong returns occurred in India, China, Brazil and Russia, with outperformance also seen in the smallerweighted countries of Egypt, Indonesia, the Czech Republic and Turkey. The poorest performing countries in the Index included Hungary, Mexico, Argentina, Chile, Taiwan and Poland.(2) Management Discussion ------------------------------------------------------------------------------- o During the six months ended December 31, 2007, management's country weighting methodology enabled the Fund to turn in positive performance for the six-month period. During the period, dramatic differences occurred in the performance of various markets, and even within some markets from month to month. As a result, the Fund's performance was solid, especially given its structural underweights to strongperforming Brazil and China. Management's strategy of broad country diversification, including the contribution of less-familiar and smaller-cap-weighted emerging countries, proved beneficial. o The Fund underperformed the Index and the Lipper Emerging Markets Classification primarily as a result of structural differences between the Fund's investments and the Index. The main detracting countries were China and Brazil. Structural differences in Hungary, Chile, Mexico, the Philippines, Russia, Argentina and Estonia also limited performance to a lesser extent.(2) o The strongest contributions to the Fund's relative performance came from Taiwan and Korea, in which the Fund was underweighted (both countries underperformed). The Fund also benefited from structural differences, compared with the Index, in weightings in Saudi Arabia, Indonesia, Turkey and Oman.(2) ------------------------------------------------------------------------------- Total Return Performance 6/30/07 - 12/31/07 ------------------------------------------------------------------ Eaton Vance Tax-Managed Emerging Markets Fund, Class I(1) 15.16% S&P International Finance Corp. Investable Emerging Markets Index(2) 18.04 Lipper Emerging Markets Average(2) 16.60 ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com. ------------------------------------------------------------------------------- (1) The Fund has no sales charge. This return does not include the 2% fee Class I shares are subject to when they are exchanged or redeemed. (2) It is not possible to invest directly in an Index or Lipper Classification. The Index's total return does not reflect commissions or expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. The Lipper Classification return shown is the average total return, at net asset value, of the funds that are in the same Lipper Classification as the Fund. See page 3 for more performance information, including after-tax returns. ------------------------------------------------------------------------------- Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested. ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- The views expressed throughout this report are those of the portfolio managers and are current only through the end of the period of the report as stated on the cover. These views are subject to change at any time based upon market or other conditions, and the investment advisor disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund are based on many factors, may not be relied on as an indication of trading intent on behalf of any Eaton Vance fund. In addition, portfolio information provided in the report may not be representative of the Fund's current or future investments and may change due to active management. ------------------------------------------------------------------------------- Eaton Vance Tax-Managed Emerging Markets Fund as of December 31, 2007 PORTFOLIO COMPOSITION Regional Weightings* -------------------------------------------------- By total investments Asia/Pacific 37.9% Emerging Europe 22.8% Middle East/Africa 20.3% Latin America 18.3% United States 0.7% Sector Weightings* -------------------------------------------------- By total investments Financials 23.1% Telecommunication Services 14.2% Industrials 10.7% Energy 10.5% Materials 10.4% Consumer Staples 9.5% Consumer Discretionary 6.7% Utilities 4.9% Diversified 4.2% Technology 3.1% Investment Funds 1.8% Other 0.9% *Weightings are shown as a percentage of the Fund's total investments as of 12/31/07. Eaton Vance Tax-Managed Emerging Markets Fund as of December 31, 2007 FUND PERFORMANCE "Return Before Taxes" does not take into consideration shareholder taxes. It is most relevant to tax-free or tax-deferred shareholder accounts. "Return After Taxes on Distributions" reflects the impact of federal income taxes due on Fund distributions of dividends and capital gains. It is most relevant to taxpaying shareholders who continue to hold their shares. "Return After Taxes on Distribution and Sale of Fund Shares" also reflects the impact of taxes on capital gain or loss realized upon a sale of shares. It is most relevant to taxpaying shareholders who sell their shares. Average Annual Total Returns (For the periods ended December 31, 2007) Returns at Net Asset Value (NAV) (Class I) ------------------------------------------------------------------------------- One Year Five Years Life of Fund(1) Return Before Taxes 40.18% 40.83% 21.76% Return After Taxes on Distributions 39.68 40.10 21.08 Return After Taxes on Distributions and Sale of Fund Shares 27.10 36.78 19.53 Returns Reflecting the Redemption Fee (Class I) ------------------------------------------------------------------------------- One Year Five Years Life of Fund(1) Return Before Taxes 37.46% 40.33% 21.55% Return After Taxes on Distributions 36.96 39.60 20.86 Return After Taxes on Distributions and Sale of Fund Shares 25.33 36.31 19.32 Total Annual Operating Expenses (Class I)(2) ------------------------------------------------------------------------------- Expense Ratio 0.97% (1) Class I commenced operations on 6/30/98. The Fund's performance prior to 2/6/04 is that of its predecessor, the PIMCO PPA Tax-Efficient Structured Emerging Markets Fund. (2) From the Fund's prospectus dated 11/1/07. ------------------------------------------------------------------------------- Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than the quoted return. Fund performance during certain periods reflects the strong stock market performance and/or the strong performance of stocks held during those periods. This performance is not typical and may not be repeated. For performance as of the most recent month end, please refer to www.eatonvance.com. ------------------------------------------------------------------------------- After-tax returns are calculated using certain assumptions. After-tax returns are calculated using the highest historical individual federal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax returns depend on a shareholder's tax situation and the actual characterization of distributions and may differ from those shown. After-tax returns are not relevant for shareholders who hold Fund shares in tax-deferred accounts or to shares held by non-taxable entities. Return After Taxes on Distributions for a period may be the same as Return Before Taxes for that period because no taxable distributions were paid during that period, or because the taxable portion of distributions made during the period was insignificant. Also, Return After Taxes on Distributions and Sale of Fund Shares for a period may be greater than Return After Taxes on Distributions for the same period because of realized losses on the sale of Fund shares. The Fund's after-tax returns may also reflect foreign tax credits passed by the Fund to its shareholders. Eaton Vance Tax-Managed Emerging Markets Fund as of December 31, 2007 FUND EXPENSES EXAMPLE: As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution or service fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 - December 31, 2007). ACTUAL EXPENSES: The first section of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES: The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratios and an assumed rate of return of 5% per year (before expenses), which is not the actual return of the Fund. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees (if applicable). Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. ------------------------------------------------------------------------------- EATON VANCE TAX-MANAGED EMERGING MARKETS FUND Expenses Paid Beginning Ending During Period* Account Value Account Value (7/1/07 - (7/1/07) (12/31/07) 12/31/07) ------------------------------------------------------------------------------- ACTUAL Class I $1,000.00 $1,151.60 $5.15 ------------------------------------------------------------------------------- HYPOTHETICAL (5% return per year before expenses) Class I $1,000.00 $1,020.30 $4.84 * Expenses are equal to the Fund's annualized expense ratio of 0.95% for Class I shares, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on June 30, 2007. ------------------------------------------------------------------------------- Eaton Vance Tax-Managed Emerging Markets Fund as of December 31, 2007 PORTFOLIO OF INVESTMENTS (Unaudited) Long-Term Investments Common Stocks -- 97.0%
Security Shares Value ----------------------------------------------------------------------------------------------------- Argentina -- 1.4% ----------------------------------------------------------------------------------------------------- Aluar Aluminio Argentino SAIC 84,450 $ 158,176 Banco Macro Bansud SA (Class "B" Shares) 130,676 319,430 Banco Macro SA (Class "B" Shares) (ADR) 24,700 611,078 BBVA Banco Frances SA 67,312 180,567 BBVA Banco Frances SA (ADR) 65,400 493,116 Cresud SA (ADR) 65,800 1,309,420 Grupo Financiero Galicia SA (Class "B" Shares)(a) 89,316 65,215 Grupo Financiero Galicia SA (Class "B" Shares) (ADR)(a) 103,000 780,740 IRSA Inversiones y Representaciones SA(a) 119,544 178,367 IRSA Inversiones y Representaciones SA (GDR)(a) 57,300 834,288 Ledesma SAAI 259,501 313,049 Molinos Rio de la Plata SA (Class "B" Shares)(a) 92,923 311,218 Petrobras Energia Participaciones SA (ADR) 111,700 1,558,215 Petrobras Energia Participaciones SA (Class "B" Shares) 134,218 166,175 Siderar SAIC 75,100 584,111 Telecom Argentina SA (Class "B" Shares)(a) 229,824 1,043,328 Telecom Argentina SA (Class "B" Shares) (ADR)(a) 91,900 2,044,775 Tenaris SA 287,701 6,420,756 Tenaris SA (ADR) 39,600 1,771,308 Transportadora de Gas del Sur SA(a) 252,923 305,114 Transportadora de Gas del Sur SA (ADR)(a) 33,800 201,786 ----------------------------------------------------------------------------------------------------- $ 19,650,232 ----------------------------------------------------------------------------------------------------- Botswana -- 0.2% ----------------------------------------------------------------------------------------------------- Sechaba Breweries Ltd. 284,600 $ 801,448 Sefalana Holding Co. 991,000 615,597 Standard Chartered Bank of Botswana 488,210 1,506,240 ----------------------------------------------------------------------------------------------------- $ 2,923,285 ----------------------------------------------------------------------------------------------------- Brazil -- 6.3% ----------------------------------------------------------------------------------------------------- AES Tiete SA 3,831,800 $ 170,063 AES Tiete SA (PFD Shares) 4,679,000 174,805 All America Latina Logistica (PFD Shares) 59,000 763,685 American Banknote SA 19,000 170,786 Aracruz Celulose SA (PFD Shares) 63,000 456,927 Banco Bradesco SA 40,000 1,157,303 Banco Bradesco SA (PFD Shares) 126,480 4,046,649 Banco Itau Holding Financeira SA (PFD Shares) 130,400 3,333,258 Bombril SA (PFD Shares)(a) 100,000 820,225 Brasil Telecom Participacoes SA 9,400 245,562 Brasil Telecom Participacoes SA (PFD Shares) 40,919 598,153 Brasil Telecom SA (PFD Shares) 42,212 432,792 Braskem SA (PFD Shares) 16,000 129,438 Centrais Eletricas Brasileiras SA 44,000 591,528 Centrais Eletricas Brasileiras SA (Class "B" Shares) (PFD Shares) 34,382 443,296 Cia Brasileira de Distribuicao Grupo Pao de Acucar (PFD Shares) 14,356 275,103 Cia Brasileira de Petroleo Ipiranga (PFD Shares) 11,500 163,778 Cia de Bebidas das Americas (PFD Shares) 69,237 5,004,124 Cia de Companhia de Concessoes Rodoviarias (CCR) 40,000 617,977 Cia de Saneamento Basico do Estado de Sao Paulo 23,200 536,076 Cia Energetica de Minas Gerais 7,786 147,803 Cia Energetica de Minas Gerais (PFD Shares) 57,546 1,050,699 Cia Energetica de Sao Paulo (PFD Shares)(a) 23,500 573,374 Cia Paranaense de Energia-Copel (PFD Shares) 18,000 271,011 Cia Siderurgica Nacional SA (CSN) 20,100 1,779,640 Cia Vale do Rio Doce 189,400 6,310,851 Cia Vale do Rio Doce (PFD Shares) 328,292 9,360,011 Contax Participacoes SA 350 13,565 Contax Participacoes SA (ADR) 26,608 35,655 Contax Participacoes SA (PFD Shares) 7,550 216,320 CPFL Energia SA 15,000 283,736 Cyrela Brazil Realty SA 20,824 283,113 Cyrela Commercial Properties SA Empreendimentos e Participacoes(a) 4,164 28,095 Duratex SA (PFD Shares) 45,600 1,114,382 EDP-Energias do Brasil SA 16,600 269,517 Eletropaulo Metropolitana SA (Class "B" Shares) (PFD Shares) 5,767,190 471,419 Embratel Participacoes SA(a) 37,424,000 140,866 Embratel Participacoes SA (PFD Shares) 67,000,000 252,567 Empresa Brasileira de Aeronautica SA 275,351 3,117,035 Gerdau SA (PFD Shares) 39,400 1,150,126 Gol Linhas Aereas Inteligentes SA (PFD Shares) 14,000 344,180 Investimentos Itau SA (PFD Shares) 751,217 4,958,876 Klabin SA (PFD Shares) 47,000 174,534 Localiza Rent a Car SA 19,500 206,941 Lojas Americanas SA (PFD Shares) 288,359 2,519,091 Lojas Renner SA 29,000 586,517 Lupatech SA 13,700 461,798 Marcopolo SA (PFD Shares) 46,300 187,281 Metalurgica Gerdau SA (PFD Shares) 15,700 626,236 Natura Cosmeticos SA 35,000 334,270 Net Servicos de Comunicacao SA (PFD Shares)(a) 109,407 1,333,782 Perdigao SA 24,508 609,396 Petroleo Brasileiro SA 137,600 8,116,854 Petroleo Brasileiro SA (ADR) 93,700 9,015,814 Petroleo Brasileiro SA (PFD Shares) 22,900 1,137,281 Randon Participacoes SA (PFD Shares) 63,700 617,317 Sadia SA (PFD Shares) 172,000 977,888 Souza Cruz SA 18,700 506,371 Suzano Papel e Celulose SA 20,000 325,843 Tam SA (PFD Shares) 12,600 301,904 Tele Norte Leste Participacoes SA 11,200 368,404 Tele Norte Leste Participacoes SA (PFD Shares) 24,000 460,449 Tele Norte Leste Participacoes SA (PFD Shares) (ADR) 26,608 513,002 Telemar Norte Leste SA (PFD Shares) 9,000 346,348 Telemig Celular Participacoes SA (PFD Shares) 5,460 148,800 Telesp-Telecomunicacoes de Sao Paulo SA 5,050 131,924 Telesp-Telecomunicacoes de Sao Paulo SA (PFD Shares) 7,313 185,701 Tim Participacoes SA 30,104 142,064 Tim Participacoes SA (PFD Shares) 148,232 506,321 Totvs SA 11,000 364,607 Tractebel Energia SA 16,300 195,051 Ultrapar Participacoes SA (PFD Shares) 5,000 176,966 Unibanco-Uniao de Bancos Brasileiros SA 136,446 1,895,680 Usinas Siderurgicas de Minas Gerais SA 6,900 321,742 Usinas Siderurgicas de Minas Gerais SA (PFD Shares) 21,000 961,517 Vivo Participacoes SA (PFD Shares) 100,000 528,652 Votorantim Celulose e Papel SA (PFD Shares) 12,400 377,573 Weg SA 130,700 1,850,360 ----------------------------------------------------------------------------------------------------- $ 89,818,648 ----------------------------------------------------------------------------------------------------- Bulgaria -- 0.1% ----------------------------------------------------------------------------------------------------- Albena Invest Holding Plc(a) 19,550 $ 296,655 Bulgarian Telecommunications Co. 32,300 252,306 Bulgartabak Holding 3,450 79,945 Doverie Holding AD(a) 37,500 400,844 Sopharma AD 48,000 322,380 ----------------------------------------------------------------------------------------------------- $ 1,352,130 ----------------------------------------------------------------------------------------------------- Chile -- 2.7% ----------------------------------------------------------------------------------------------------- Administradora de Fondos de Pensiones Provida SA (ADR) 9,800 $ 364,854 Almendral SA 7,092,000 761,968 Antarchile SA (Series "A") 28,200 651,270 Banco de Chile 4,293,319 347,466 Banco de Chile (ADR) 21,259 996,622 Banco de Credito e Inversiones 54,100 1,624,249 Banco Santander Chile SA (ADR) 47,622 2,428,246 Cap SA 12,000 328,708 Cencosud SA 176,100 708,715 Cia Cervecerias Unidas SA (ADR) 37,800 1,351,728 Cia de Telecomunicaciones de Chile SA (ADR) 90,600 675,876 Cia Electro Metalurgica SA 17,500 223,165 Cia SudAmericana de Vapores SA(a) 194,200 425,099 Coia General de Electricidad SA 57,710 457,786 Colbun SA 3,410,100 701,949 Corpbanca SA 52,506,600 363,787 Corpbanca SA (ADR) 17,000 609,960 Distribucion y Servicio D&S SA (ADR) 48,500 1,470,035 Embotelladora Andina SA (Series "A") (ADR) 25,100 420,425 Embotelladora Andina SA (Series "B") (ADR) 48,900 919,320 Empresa Nacional de Electricidad SA (ADR) 61,159 2,297,744 Empresa Nacional de Telecomunicaciones SA 47,600 743,705 Empresas CMPC SA 18,900 713,566 Empresas Copec SA 168,000 3,002,711 Enersis SA (ADR) 137,171 2,198,851 Grupo Security SA 920,700 358,702 Invercap SA 51,300 501,199 Inversiones Aguas Metropolitanas SA 211,100 254,363 Lan Airlines SA (ADR) 80,500 1,079,505 Madeco SA(a) 3,091,400 356,850 Madeco SA (ADR)(a) 105,700 1,240,918 Masisa SA (ADR) 140,805 1,423,539 Parque Arauco SA 498,800 585,999 Quinenco SA 223,900 458,681 S.A.C.I. Falabella SA 465,900 2,264,239 SM-Chile SA (Class "B" Shares) 2,793,600 336,612 Sociedad Quimica y Minera de Chile SA (ADR) 2,095 460,376 Sociedad Quimica y Minera de Chile SA (Series "B") (ADR) 20,600 3,641,050 Vina Concha y Toro SA (ADR) 31,000 1,316,880 ----------------------------------------------------------------------------------------------------- $ 39,066,718 ----------------------------------------------------------------------------------------------------- China -- 6.1% ----------------------------------------------------------------------------------------------------- Air China Ltd. (Class "H" Shares) 300,000 $ 440,503 Aluminum Corp. of China Ltd. (Class "H" Shares) 330,000 666,328 Beijing Enterprises Holdings Ltd. 65,000 306,917 Beijing North Star Co., Ltd. (Class "H" Shares) 1,580,000 955,132 BOE Technology Group Co., Ltd. (Class "B" Shares)(a) 1,405,300 979,320 BYD Co., Ltd. (Class "H" Shares) 70,000 456,887 Chaoda Modern Agriculture Holdings Ltd. 222,750 200,127 China Construction Bank (Class "H" Shares)(144A) 3,489,000 2,926,227 China COSCO Holdings Co., Ltd. (Class "H" Shares) 323,150 873,724 China Everbright Ltd.(a) 456,000 1,419,721 China Foods Ltd.(a) 460,000 338,962 China International Marine Containers Co., Ltd. (Class "B" Shares) 163,812 302,144 China Life Insurance Co., Ltd. (Class "H" Shares) 1,378,000 7,043,595 China Mengniu Dairy Co., Ltd. 143,000 517,907 China Merchants Holdings International Co., Ltd. 824,000 5,055,546 China Merchants Property Development Co., Ltd. 392,436 1,461,753 China Mobile Hong Kong Ltd. 630,900 10,986,805 China Netcom Group Corp. (Hong Kong) Ltd. 120,500 358,248 China Overseas Land & Investment Ltd. 796,500 1,633,244 China Petroleum & Chemical Corp. (Class "H" Shares) 3,974,000 5,881,247 China Resources Enterprise Ltd. 294,000 1,229,903 China Southern Airlines Co., Ltd. (Class "H" Shares)(a) 375,000 490,365 China Telecom Corp. Ltd. (Class "H" Shares) 1,950,000 1,528,141 China Travel International Investment Hong Kong Ltd. 800,000 520,554 China Unicom Ltd. 420,000 950,590 China Vanke Co., Ltd. (Class "B" Shares) 740,886 1,909,330 Chongqing Changan Automobile Co., Ltd. (Class "B" Shares) 602,520 637,725 CITIC International Financial Holdings Ltd. 384,000 237,510 CNOOC Ltd. 1,532,500 2,573,636 Cosco Pacific Ltd. 122,000 318,259 Ctrip.com International Ltd. (ADR) 14,600 839,062 Dazhong Transportation Group Co., Ltd. (Class "B" Shares) 422,583 872,128 Denway Motors Ltd. 960,000 603,352 Dongfeng Motor Corp. (Class "H" Shares) 836,000 583,108 Focus Media Holding Ltd. (ADR)(a) 21,890 1,243,571 Guangdong Electric Power Development Co., Ltd. (Class "B" Shares) 264,000 229,553 Guangdong Investment Ltd. 374,000 210,331 Guangdong Provincial Expressway Development Co., Ltd. (Class "B" Shares) 234,960 206,412 Hangzhou Steam Turbine Co., Ltd. (Class "B" Shares) 210,236 511,968 Jiangsu Expressway Co., Ltd. (Class "H" Shares) 352,000 380,053 Kingboard Chemical Holdings Ltd. 86,500 504,410 Lenovo Group Ltd. 492,000 431,383 Li Ning Co., Ltd. 108,000 398,363 Lianhua Supermarket Holdings Ltd. (Class "H" Shares) 130,000 173,270 Maanshan Iron & Steel Co., Ltd. (Class "H" Shares) 2,729,000 1,784,618 Parkson Retail Group Ltd. 58,000 692,152 PetroChina Co., Ltd. (Class "H" Shares) 1,872,300 3,297,759 PICC Property & Casualty Co., Ltd. (Class "H" Shares) 390,000 548,541 Ping An Insurance Group Co. of China Ltd. (Class "H" Shares) 333,000 3,521,144 Qingling Motors Co., Ltd. (Class "H" Shares) 1,448,966 278,939 Samling Global Ltd. 1,722,000 341,746 Samson Holding Ltd. 222,000 45,915 Semiconductor Manufacturing International Corp.(a) 2,825,000 292,829 Shanghai Diesel Engine Co., Ltd. (Class "B" Shares)(a)(b) 534,000 673,908 Shanghai Electric Group Co., Ltd. (Class "H" Shares) 460,000 379,424 Shanghai Industrial Holdings Ltd. 84,000 363,209 Shanghai Jinjiang International Hotels Development Co., Ltd. (Class "B" Shares) 574,800 1,044,801 Shanghai Zhenhua Port Machinery Co., Ltd. (Class "B" Shares) 440,000 1,225,301 Shenzhen Chiwan Wharf Holdings Ltd. (Class "B" Shares) 153,115 329,413 SINA Corp.(a) 9,000 398,790 Sinopec Yizheng Chemical Fibre Co., Ltd. (Class "H" Shares)(a) 3,201,000 1,088,909 Sinopec-China Petroleum & Chemical Corp. (Class "H" Shares) 1,628,000 994,299 Sinotrans Ltd. (Class "H" Shares) 300,000 130,803 Suntech Power Holdings Co., Ltd. (ADR)(a) 4,600 378,672 Tingyi (Cayman Islands) Holding Corp. 1,184,000 1,860,073 TPV Technology Ltd. 84,000 60,635 Travelsky Technology Ltd. (Class "H" Shares) 812,000 855,494 Tsingtao Brewery Co., Ltd. (Class "H" Shares) 1,124,000 3,736,086 Weiqiao Textile Co., Ltd. (Class "H" Shares) 82,000 116,071 Wumart Stores, Inc. (Class "H" Shares) 156,000 132,644 Yantai Changyu Pioneer Wine Co., Ltd. (Class "B" Shares) 103,948 777,331 Yanzhou Coal Mining Co., Ltd. (Class "H" Shares) 320,000 618,245 Zhejiang Expressway Co., Ltd. (Class "H" Shares) 186,000 293,685 ZTE Corp. (Class "H" Shares) 135,000 717,802 ----------------------------------------------------------------------------------------------------- $ 87,366,552 ----------------------------------------------------------------------------------------------------- Colombia -- 0.7% ----------------------------------------------------------------------------------------------------- Almacenes Exito SA 99,500 $ 843,450 Banco de Bogota 14,000 225,555 Bancolombia SA (PFD Shares) (ADR) 53,000 1,803,060 Cementos Argos SA 167,900 747,425 Cia Colombiana de Inversiones SA 24,000 295,055 Cia de Cemento Argos SA 214,100 1,279,983 Grupo Aval Acciones y Valores SA 1,192,000 379,951 Grupo Nacional de Chocolates SA 156,400 1,279,266 Interconexion Electrica SA 470,000 1,654,232 Promigas SA 27,000 531,367 Suramericana de Inversiones SA 86,000 850,941 ----------------------------------------------------------------------------------------------------- $ 9,890,285 ----------------------------------------------------------------------------------------------------- Croatia -- 0.8% ----------------------------------------------------------------------------------------------------- Adris Grupa DD (PFD Shares) 13,700 $ 1,582,170 Atlantska Plovidba DD 1,380 965,534 Croatia Osiguranje DD(a) 160 564,593 Dalekovod DD 2,270 760,641 Ericsson Nikola Tesla 2,010 1,353,979 INA Industrija Nafte DD 2,142 1,185,774 Institut Gradevinarstva Hrvatske DD 110 306,782 Koncar-Elektroindustrija DD(a) 2,370 571,465 Kras DD 1,645 246,947 Petrokemija DD(a) 5,250 306,745 Podravka Prehrambena Industija DD 8,200 834,184 Privredna Banka Zagreb DD(a) 3,310 1,165,361 Riviera Holding DD(a) 3,830 468,670 Tankerska Plovidba DD 290 404,358 ----------------------------------------------------------------------------------------------------- $ 10,717,203 ----------------------------------------------------------------------------------------------------- Czech Republic -- 3.0% ----------------------------------------------------------------------------------------------------- CEZ AS 276,570 $ 20,587,676 Komercni Banka AS 21,900 5,214,151 Komercni Banka AS (GDR) 27,154 2,009,396 Philip Morris CR AS 1,860 799,286 Telefonica 02 Czech Republic AS 94,700 2,838,231 Telefonica 02 Czech Republic AS (GDR)(b) 54,303 1,627,032 Unipetrol AS(a) 343,200 6,402,773 Zentiva NV 75,500 3,977,000 ----------------------------------------------------------------------------------------------------- $ 43,455,545 ----------------------------------------------------------------------------------------------------- Egypt -- 1.8% ----------------------------------------------------------------------------------------------------- Alexandria Mineral Oils Co. 49,000 $ 696,415 Arab Cotton Ginning 243,000 385,213 Commercial International Bank 85,630 1,412,109 Credit Agricole Egypt(a) 38,690 185,516 Eastern Tobacco 16,200 1,318,613 Egypt Kuwaiti Holding Co. 303,600 737,748 Egyptian Financial & Industrial Co. 25,700 751,483 Egyptian Financial Group-Hermes Holding SAE 133,700 1,592,211 Egyptian International Pharmaceutical Industrial Co. 40,120 237,029 Egyptian Media Production City(a) 50,475 104,130 El Ezz Aldekhela Steel Alexa Co. 3,050 596,481 El Ezz Steel Rebars SAE 71,600 858,988 El Sewedy Cables Holding Co.(a) 19,000 405,228 El Watany Bank of Egypt 32,900 405,565 Medinet Nasr for Housing 45,000 551,066 Misr Cement 18,251 256,680 MobiNil-Egyptian Co. for Mobil Services 13,978 515,663 National Societe General Bank 28,980 238,410 Olympic Group Financial Investments 67,971 909,209 Orascom Construction Industries (OCI) 47,301 4,885,661 Orascom Hotel Holdings SAE(a) 11,863 118,216 Orascom Hotels & Development(a) 83,200 1,243,974 Orascom Telecom Holding SAE 242,000 4,012,270 Oriental Weavers Co. 26,710 253,503 Raya Holding Co. 43,400 102,752 Sidi Kerir Petrochemcials Co. 267,800 1,019,497 Suez Cement Co. 42,400 436,570 Telecom Egypt 165,000 626,050 Torah Portland Cement Co. 4,300 94,005 ----------------------------------------------------------------------------------------------------- $ 24,950,255 ----------------------------------------------------------------------------------------------------- Estonia -- 0.8% ----------------------------------------------------------------------------------------------------- AS Baltika 104,189 $ 592,917 AS Eesti Ehitus 115,400 821,054 AS Eesti Telekom 46,400 528,462 AS Eesti Telekom (GDR) 42,400 1,679,040 AS Harju Elekter 18,000 88,855 AS Merko Ehitus 76,600 1,448,995 AS Norma 25,000 182,363 AS Olympic Entertainment Group 323,800 1,642,510 AS Saku Olletehase 8,000 149,129 AS Tallink Group Ltd. 1,956,633 2,997,469 AS Tallinna Kaubamaja 62,200 704,148 AS Tallinna Vesi 12,935 244,965 ----------------------------------------------------------------------------------------------------- $ 11,079,907 ----------------------------------------------------------------------------------------------------- Ghana -- 0.3% ----------------------------------------------------------------------------------------------------- Aluworks Ghana Ltd. 1,810,900 $ 1,328,517 CAL Bank Ltd. 1,000,000 456,706 Ghana Commercial Bank Ltd. 274,603 282,321 Home Finance Co., Ltd. 2,418,579 1,348,986 SSB Bank Ltd. 370,000 477,888 Standard Chartered Bank of Ghana Ltd. 10,200 274,024 Unilever Ghana Ltd. 249,000 542,870 ----------------------------------------------------------------------------------------------------- $ 4,711,312 ----------------------------------------------------------------------------------------------------- Hungary -- 3.1% ----------------------------------------------------------------------------------------------------- Danubius Hotel & Spa Rt.(a) 8,190 $ 435,432 EGIS Rt. 3,378 365,456 FHB Land Credit & Mortgage Bank Rt. 18,000 192,103 Fotex Rt.(a) 478,034 2,440,906 Magyar Telekom Rt. 1,437,000 7,448,624 Magyar Telekom Rt. (ADR) 37,300 1,004,489 MOL Hungarian Oil & Gas Rt. 70,705 9,964,807 OTP Bank Rt. 292,420 14,748,514 Pannonplast Rt.(a) 129,000 1,268,305 RABA Automotive Holding Rt.(a) 52,760 572,831 Richter Gedeon Rt. 23,152 5,542,201 ----------------------------------------------------------------------------------------------------- $ 43,983,668 ----------------------------------------------------------------------------------------------------- India -- 7.1% ----------------------------------------------------------------------------------------------------- Aban Offshore Ltd. 4,700 $ 584,998 ACC Ltd. 18,500 474,715 Aditya Birla Nuvo Ltd. 6,706 333,951 Allahabad Bank Ltd. 64,000 191,071 Amtek Auto Ltd. 16,000 169,182 Andhra Bank 55,000 144,349 Asea Brown Boveri India Ltd. 18,700 710,828 Ashok Leyland Ltd. 123,000 161,034 Asian Paints Ltd. 8,000 220,514 Bajaj Auto Ltd. 11,100 730,365 Bajaj Auto Ltd. (GDR)(144A) 7,202 483,019 Bajaj Hindusthan Ltd. 14,000 100,780 Balrampur Chini Mills Ltd. 46,000 129,799 Bank of India 43,100 396,643 Bharat Earth Movers Ltd. 5,000 212,365 Bharat Electronics Ltd. 5,000 263,148 Bharat Forge Ltd. 42,200 372,772 Bharat Heavy Electricals Ltd. 26,000 1,687,026 Bharat Petroleum Corp. Ltd. 14,000 182,609 Bharti Airtel Ltd.(a) 188,400 4,682,098 Biocon Ltd. 19,200 279,312 Canara Bank Ltd. 21,500 180,106 Century Textiles & Industries Ltd. 12,000 350,585 Cipla Ltd. 120,600 642,223 Colgate-Palmolive India Ltd. 13,000 134,387 Container Corp. of India Ltd. 4,500 217,767 Corp. Bank 17,000 183,161 Cummins India Ltd. 23,000 240,896 Dabur India Ltd. 51,000 146,454 Dish TV India Ltd.(a) 20,412 51,982 Divi's Laboratories Ltd. 7,000 329,190 Dr. Reddy's Laboratories Ltd. (ADR) 26,800 486,688 EIH Ltd. 52,500 245,582 Essar Oil Ltd.(a) 99,000 802,494 Financial Technologies India Ltd. 3,500 229,473 Gail India Ltd. 27,000 366,614 Gail India Ltd. (GDR) 16,700 1,369,400 Glaxosmithkline Pharmaceuticals Ltd. 8,000 206,620 Glenmark Pharmaceuticals Ltd. 28,000 417,804 GMR Infrastructure(a) 60,000 375,267 Grasim Industries Ltd. (GDR)(144A) 13,300 1,250,200 Great Eastern Shipping Co., Ltd. 15,200 212,197 Great Offshore Ltd. 3,800 89,169 GTL Ltd. 34,000 238,091 Gujarat Ambuja Cements Ltd. 159,800 593,919 HCL Technologies Ltd. 16,000 132,213 HDFC Bank Ltd. 51,200 2,196,699 HDFC Bank Ltd. (ADR) 7,700 1,004,465 Hero Honda Motors Ltd. 31,942 559,232 Hexaware Technologies Ltd. 30,000 64,227 Hindalco Industries Ltd. (GDR)(144A) 140,410 751,194 Hindustan Lever Ltd. 306,109 1,636,299 Hindustan Petroleum Corp. Ltd. 18,000 164,941 Hindustan Zinc Ltd. 19,900 408,516 Housing Development Finance Corp. 46,200 3,308,675 I-Flex Solutions Ltd.(a) 4,000 151,222 ICICI Bank Ltd. 132,300 4,091,793 ICICI Bank Ltd. (ADR) 26,300 1,617,450 India Cements Ltd. 48,000 375,586 Indiabulls Financial Services Ltd. 17,000 415,338 Indiabulls Real Estate Ltd.(a) 17,000 317,976 Indian Hotels Co., Ltd. 129,100 518,819 Indian Oil Corp. Ltd. 11,000 219,269 Industrial Development Bank of India Ltd. 74,000 305,650 Infosys Technologies Ltd. 66,851 2,973,510 Infrastructure Development Finance Co., Ltd. 185,300 1,058,195 ITC Ltd. 411,100 2,177,990 ITC Ltd. (GDR)(144A) 220,700 1,191,780 IVRCL Infrastructures & Projects Ltd. 21,600 302,851 Jaiprakash Associates Ltd. 55,000 587,792 Jammu & Kashmir Bank Ltd. 12,000 257,444 Jet Airways (India) Ltd. 9,000 225,221 Jindal Steel & Power Ltd. 3,000 1,151,039 JSW Steel Ltd. 17,000 562,964 Kotak Mahindra Bank Ltd. 32,000 1,048,097 Larsen & Toubro Ltd. 12,200 1,276,376 Larsen & Toubro Ltd. (GDR) 24,000 2,586,000 LIC Housing Finance Ltd. 30,000 288,055 Lupin Ltd. 14,300 224,772 Mahanagar Telephone Nigam Ltd. 31,000 149,416 Mahanagar Telephone Nigam Ltd. (ADR) 38,500 369,215 Mahindra & Mahindra Ltd. 40,800 876,780 Maruti Udyog Ltd. 29,000 723,109 Moser Baer India Ltd. 24,300 187,081 Motor Industries Co., Ltd. 3,900 502,062 Mphasis Ltd. 27,000 208,289 National Aluminium Co., Ltd. 24,000 290,217 Nestle India Ltd. 12,100 466,904 Neyveli Lignite Corp. Ltd. 78,000 502,141 Nicholas Piramal India Ltd. 21,000 188,832 NTPC Ltd. 295,200 1,859,037 Oil & Natural Gas Corp. Ltd. 53,250 1,659,078 Patni Computer Systems Ltd. 14,000 115,168 Petronet LNG Ltd. 94,000 253,081 Punjab National Bank Ltd. 13,000 216,385 Ranbaxy Laboratories Ltd. 46,300 495,348 Ranbaxy Laboratories Ltd. (GDR) 20,500 217,915 Reliance Capital Ltd. 22,000 1,427,486 Reliance Capital Ltd. (GDR)(144A)(a) 2,140 140,464 Reliance Communications Ltd. 227,700 4,263,538 Reliance Communications Ltd. (GDR)(144A) 42,816 810,807 Reliance Energy Ltd. 26,300 1,415,534 Reliance Energy Ltd. (GDR)(144A)(a) 1,070 173,913 Reliance Energy Ltd. (GDR) 5,900 967,682 Reliance Industries Ltd. 61,300 4,467,379 Reliance Industries Ltd. (GDR)(144A) 21,408 3,163,032 Reliance Natural Resources Ltd. (GDR)(144A)(a) 21,408 198,302 Reliance Petroleum Ltd.(a) 207,300 1,164,508 Satyam Computer Services Ltd. 41,300 467,788 Satyam Computer Services Ltd. (ADR) 24,000 641,280 Sesa Goa Ltd. 5,000 478,522 Shipping Corp. of India Ltd. 33,000 266,717 Siemens India Ltd. 10,900 516,897 State Bank of India (GDR) 11,800 1,420,196 Steel Authority of India Ltd. 156,000 1,105,888 Sterlite Industries (India) Ltd. 12,000 310,924 Sun Pharma Advanced Research Co., Ltd.(a) 10,000 40,241 Sun Pharmaceuticals Industries Ltd. 10,000 304,635 Suzlon Energy Ltd. 11,500 559,543 Syndicate Bank 66,000 190,111 Tata Chemicals Ltd. 22,000 227,462 Tata Consultancy Services Ltd. 24,190 644,517 Tata Motors Ltd. 18,100 338,175 Tata Motors Ltd. (ADR) 19,800 373,428 Tata Power Co., Ltd. 46,000 1,694,880 Tata Steel Ltd. 78,720 1,841,376 Tata Steel Ltd. (PFD Shares)(a) 59,040 232,746 Tata Tea Ltd. 6,000 136,487 Tata Teleservices Maharashtra Ltd.(a) 280,840 437,532 Titan Industries Ltd. 6,000 233,344 Ultra Tech Cement Ltd. 7,000 177,686 Unitech Ltd. 55,000 675,001 United Breweries Ltd. 34,200 283,199 United Phosphorus Ltd. 20,000 176,110 United Spirits Ltd. 14,100 707,409 UTI Bank Ltd. 49,300 1,193,439 Videocon Industries Ltd. 11,000 229,453 Videsh Sanchar Nigam Ltd. 12,000 230,176 Videsh Sanchar Nigam Ltd. (ADR) 11,100 418,026 Voltas Ltd. 41,700 256,949 Wipro Ltd. 20,300 268,419 Wipro Ltd. (ADR) 13,100 194,404 Wire & Wireless India Ltd.(a) 17,750 44,540 Zee Entertainment Enterprises Ltd. 76,200 628,616 Zee News Ltd.(a) 16,049 32,936 ----------------------------------------------------------------------------------------------------- $ 101,474,252 ----------------------------------------------------------------------------------------------------- Indonesia -- 3.3% ----------------------------------------------------------------------------------------------------- Aneka Tambang Tbk PT 8,587,500 $ 4,004,343 Astra Argo Lestari Tbk PT 420,000 1,235,444 Astra International Tbk PT 1,323,000 3,793,108 Bakrie & Brothers Tbk PT(a) 60,364,000 1,823,106 Bakrie Telecom PT(a) 4,350,000 190,893 Bank Central Asia Tbk PT 3,801,000 2,912,667 Bank Danamon Indonesia Tbk PT 685,000 576,457 Bank Internasional Indonesia Tbk PT 6,667,000 199,591 Bank Mandiri PT 3,258,000 1,194,080 Bank Niaga Tbk PT 4,309,000 407,074 Bank Pan Indonesia Tbk PT(a) 3,525,272 251,159 Bank Rakyat Indonesia PT 3,408,000 2,649,261 Berlian Laju Tanker Tbk PT 1,250,000 348,000 Bumi Resources Tbk PT 8,789,000 5,506,637 Energi Mega Persada Tbk PT(a) 3,938,000 614,024 Gudang Garam Tbk PT 763,500 681,740 Indah Kiat Pulp & Paper Corp. Tbk PT(a) 1,095,000 96,514 Indocement Tunggal Prakarsa Tbk PT 500,000 432,541 Indofood Sukses Makmur Tbk PT 6,576,500 1,769,423 Indonesian Satellite Corp. Tbk PT 1,592,500 1,452,697 International Nickel Indonesia Tbk PT 130,000 1,313,424 Kalbe Farma Tbk PT 1,517,000 200,713 Kawasan Industri Jababeka Tbk PT(a) 10,550,000 253,648 Lippo Karawaci Tbk PT 6,000,000 440,777 Matahari Putra Prima Tbk PT 1,600,000 115,784 Medco Energi Internasional Tbk PT 1,397,000 754,589 Perusahaan Gas Negara PT 1,000,000 1,609,773 Perusahaan Perkebunan London Sumatra Indonesia Tbk PT(a) 454,000 510,272 Ramayana Lestari Sentosa Tbk PT 4,100,000 366,678 Semen Gresik Persero Tbk PT 2,655,000 1,564,359 Telekomunikasi Indonesia Tbk PT 4,215,160 4,462,336 Tempo Scan Pacific Tbk PT 2,000,000 156,918 Unilever Indonesia Tbk PT 852,700 603,039 United Tractors Tbk PT 3,996,000 4,560,240 ----------------------------------------------------------------------------------------------------- $ 47,051,309 ----------------------------------------------------------------------------------------------------- Israel -- 3.1% ----------------------------------------------------------------------------------------------------- Africa-Israel Investments Ltd. 6,700 $ 599,058 Aladdin Knowledge Systems Ltd.(a) 10,000 261,300 Alvarion Ltd.(a) 34,900 339,162 Bank Hapoalim B.M. 495,652 2,470,724 Bank Leumi Le-Israel 496,824 2,409,666 Bezeq Israeli Telecommunication Corp. Ltd. 1,538,038 2,857,981 Cellcom Israel Ltd. 34,200 1,086,192 Ceragon Networks Ltd.(a) 20,600 203,734 Check Point Software Technologies Ltd.(a) 66,141 1,452,456 Clal Industries Ltd. 21,900 120,855 Clal Insurance Enterprise Holdings Ltd. 14,800 401,988 Delek Automotive Systems Ltd. 17,000 244,806 Delek Group Ltd. 2,140 482,686 Discount Investment Corp. 3,650 116,528 ECtel Ltd.(a) 237 680 Elbit Medical Imaging Ltd. 3,900 217,348 Elbit Systems Ltd. 7,000 418,656 First International Bank of Israel Ltd.(a) 9,100 123,688 Gazit Globe (1982) Ltd. 29,000 315,866 Gilat Satellite Networks Ltd.(a) 29,100 299,409 Harel Insurance Investments Ltd. 3,000 175,205 Housing & Construction Holdings Ltd.(a) 85,800 159,260 IDB Development Corp. Ltd. 8,276 313,446 IDB Holding Corp. Ltd. 7,103 216,522 Israel Chemicals Ltd. 349,815 4,445,237 Israel Corp. Ltd. 1,850 1,947,447 Israel Discount Bank Ltd. (Series "A")(a) 175,400 446,030 Koor Industries Ltd. 3,023 250,966 Makhteshim-Agan Industries Ltd.(a) 208,657 1,910,673 Mizrahi Tefahot Bank Ltd. 58,000 451,515 Ness Technologies, Inc.(a) 18,800 173,524 Nice Systems Ltd.(a) 22,100 764,052 Oil Refineries Ltd. 512,000 498,029 Orbotech Ltd.(a) 10,000 175,500 Ormat Industries Ltd. 26,500 395,510 Osem Investment Ltd. 1 12 Partner Communications Co., Ltd. 124,660 2,762,125 Property & Building Corp. Ltd.(a) 1,000 136,156 RADVision Ltd.(a) 6,800 75,140 RADWARE Ltd.(a) 7,700 118,580 Retalix Ltd.(a) 5,900 93,875 Strauss Group Ltd.(a) 17,400 280,190 Supersol Ltd. 68,000 301,608 Teva Pharmaceutical Industries Ltd. 87,999 4,077,864 Teva Pharmaceutical Industries Ltd. (ADR) 199,300 9,263,464 ----------------------------------------------------------------------------------------------------- $ 43,854,713 ----------------------------------------------------------------------------------------------------- Jordan -- 0.8% ----------------------------------------------------------------------------------------------------- Arab Bank Plc 118,600 $ 4,909,664 Arab East Investment 73,266 390,752 Bank of Jordan 55,600 231,422 Jordan Ahli Bank 66,000 292,402 Jordan Cement Factory 24,700 381,905 Jordan Telecom Corp. 67,000 531,273 Jordanian Electric Power Co. 50,200 305,981 Middle East Complex for Engineering, Electric, & Heavy Industries 400,900 1,425,422 Taameer Jordan Co.(a) 377,300 1,176,484 Union Investment Corp.(a) 169,900 371,563 Union Land Development(a) 156,800 435,832 United Arab Investors 302,100 1,214,059 ----------------------------------------------------------------------------------------------------- $ 11,666,759 ----------------------------------------------------------------------------------------------------- Kenya -- 0.9% ----------------------------------------------------------------------------------------------------- Athi River Mining Ltd. 561,200 $ 825,047 Bamburi Cement Co., Ltd. 366,541 1,128,201 Barclays Bank of Kenya Ltd. 1,664,880 2,053,470 East African Breweries Ltd. 697,440 1,836,962 East African Portland Cement Co., Ltd. 40,900 89,749 ICDC Investment Co. 808,000 382,350 Kenya Airways Ltd. 1,127,600 1,125,718 Kenya Commercial Bank Ltd. 3,894,400 1,739,661 Kenya Electricity Generating Co., Ltd. 1,242,800 540,559 Kenya Oil Co., Ltd. 78,000 140,596 Kenya Power & Lighting Ltd. 112,650 388,542 Mumias Sugar Co., Ltd. 2,730,114 638,732 Nation Media Group Ltd. 89,673 457,999 NIC Bank Ltd. 529,632 523,310 Standard Chartered Bank Kenya Ltd. 103,420 335,080 ----------------------------------------------------------------------------------------------------- $ 12,205,976 ----------------------------------------------------------------------------------------------------- Latvia -- 0.0% ----------------------------------------------------------------------------------------------------- Grindeks(a) 12,000 $ 138,213 Latvian Shipping Co.(a) 96,000 260,968 ----------------------------------------------------------------------------------------------------- $ 399,181 ----------------------------------------------------------------------------------------------------- Lithuania -- 0.6% ----------------------------------------------------------------------------------------------------- Apranga PVA 132,200 $ 797,118 Bankas Snoras(a) 193,500 300,248 Invalda PVA 70,800 512,052 Klaipedos Nafta PVA(a) 993,963 420,314 Lietuvos Dujos 200,000 297,883 Lietuvos Energija(a) 37,000 77,555 Pieno Zvaigzdes(a) 94,000 229,503 Rokiskio Suris(a) 177,000 582,734 Rytu Skirstomieji Tinklai 141,300 273,707 Sanitas(a) 17,500 220,621 Siauliu Bankas(a) 393,779 574,636 Snaige(a) 69,000 202,955 Teo LT AB 1,577,356 1,573,283 Teo LT AB (GDR)(144A) 60,000 602,148 Ukio Bankas Commercial Bank 1,060,003 1,650,362 ----------------------------------------------------------------------------------------------------- $ 8,315,119 ----------------------------------------------------------------------------------------------------- Malaysia -- 3.2% ----------------------------------------------------------------------------------------------------- Affin Holdings Bhd 236,000 $ 183,786 Airasia Bhd(a) 641,200 308,291 Alliance Financial Group Bhd 330,800 306,045 AMMB Holdings Bhd 432,400 493,152 Asiatic Development Bhd 121,000 314,011 Astro All Asia Networks Plc 155,000 163,640 Batu Kawan Bhd 100,300 343,535 Berjaya Sports Toto Bhd 221,384 336,484 British American Tobacco Malaysia Bhd 33,500 416,895 Bumiputra-Commerce Holdings Bhd 594,433 1,957,111 Bursa Malaysia Bhd 142,000 607,611 Dialog Group Bhd 588,000 318,695 Digi.com Bhd 100,000 746,242 EON Capital Bhd 111,000 220,381 Gamuda Bhd 647,600 937,821 Genting Bhd 842,500 1,995,578 Guinness Anchor Bhd 67,000 112,209 Hong Leong Bank Bhd 144,400 276,020 Hong Leong Financial Group Bhd 61,500 110,821 IGB Corp. Bhd 312,000 211,392 IJM Corp. Bhd 437,800 1,130,587 IOI Corp. Bhd 1,294,939 3,013,024 KLCC Property Holdings Bhd 250,000 262,767 KNM Group Bhd 1,146,100 2,637,705 Kuala Lumpur Kepong Bhd 138,250 722,306 Lafarge Malayan Cement Bhd 468,660 826,958 Landmarks Bhd 220,700 197,251 Lion Diversified Holdings Bhd 122,600 70,387 Magnum Corp. Bhd 275,000 270,538 Malayan Banking Bhd 541,455 1,871,737 Malaysian Airline System Bhd(a) 683,133 1,000,577 Malaysian Airline System Bhd (PFD Shares)(a) 110,133 34,968 Malaysian Bulk Carriers Bhd 205,000 274,459 Malaysian Pacific Industries Bhd 73,000 204,271 Malaysian Resources Corp. Bhd(a) 451,200 343,218 Media Prima Bhd 242,300 204,885 MISC Bhd(c) 112,000 333,396 MISC Bhd 324,200 951,511 MMC Corp. Bhd 233,000 648,089 Multi-Purpose Holdings Bhd 391,400 271,906 Nestle Malaysia Bhd 6,000 47,626 OSK Holdings Bhd 218,000 151,776 Parkson Holdings Bhd 159,380 467,972 Petra Perdana Bhd 322,567 521,772 Petronas Dagangan Bhd 374,700 975,023 Petronas Gas Bhd 71,000 228,353 PLUS (Projek Lebuhraya Utara Selatan) Expressways Bhd 355,700 350,637 Pos Malaysia Bhd 110,000 80,786 PPB Group Bhd 252,000 832,758 Public Bank Bhd 620,387 2,053,175 Ranhill Bhd 204,900 150,992 Resorts World Bhd 946,000 1,102,501 RHB Capital Bhd 260,500 457,667 Scomi Group Bhd 1,244,800 516,216 Shell Refining Co. Bhd 201,100 684,583 Sime Darby Bhd(a) 1,185,209 4,264,889 SP Setia Bhd 210,000 313,673 Star Publications (Malaysia) Bhd 104,000 107,781 Ta Ann Holdings Bhd 137,280 289,230 TA Enterprise Bhd 386,000 147,916 Tan Chong Motor Holdings Bhd 219,000 137,158 Tanjong Plc 104,000 578,154 Telekom Malaysia Bhd 392,700 1,322,312 Tenaga Nasional Bhd 358,625 1,034,622 Titan Chemicals Corp. Bhd 940,500 378,780 Top Glove Corp. Bhd 105,000 204,886 Uchi Technologies Bhd 237,400 191,207 UEM Builders Bhd 457,000 166,749 UEM World Bhd 689,300 809,714 UMW Holdings Bhd 57,000 267,886 Unisem (M) Bhd 215,000 106,197 WTK Holdings Bhd 200,500 147,892 YTL Corp. Bhd 250,384 595,027 YTL e-Solutions Bhd 577,000 96,613 YTL Power International Bhd 552,219 449,490 Zelan Bhd 147,200 240,436 ----------------------------------------------------------------------------------------------------- $ 46,102,709 ----------------------------------------------------------------------------------------------------- Mauritius -- 0.6% ----------------------------------------------------------------------------------------------------- Air Mauritius Ltd.(a) 83,400 $ 62,419 Ireland Blyth Ltd. 64,209 136,857 Mauritius Commercial Bank 463,595 2,667,936 Mauritius Development Investment Trust Co., Ltd. 600,000 118,295 Mon Tresor & Mon Desert Ltd. 23,449 49,564 New Mauritius Hotels Ltd. 235,400 1,622,295 Rogers & Co., Ltd. 48,555 710,645 Shell Mauritius Ltd. 22,000 35,559 State Bank of Mauritius Ltd. 641,899 1,801,422 Sun Resorts Ltd. 119,662 535,610 United Basalt Products Ltd. 85,125 120,959 ----------------------------------------------------------------------------------------------------- $ 7,861,561 ----------------------------------------------------------------------------------------------------- Mexico -- 5.7% ----------------------------------------------------------------------------------------------------- Alfa SA de CV (Series "A") 422,472 $ 2,728,922 America Movil SA de CV (Series "L") 6,586,058 20,215,034 Carso Global Telecom SA de CV (Series "A1")(a) 160,800 752,855 Carso Infraestructura y Construccion SA(a) 830,000 780,242 Cemex SAB de CV (Series "CPO")(a) 2,743,470 7,111,108 Coca-Cola Femsa SA de CV (Series "L") 77,000 378,499 Consorcio ARA SA de CV 472,000 527,601 Controladora Comercial Mexicana SA de CV 80,000 201,570 Corporacion GEO SA de CV (Series "B")(a) 113,900 327,686 Corporacion Interamericana de Entretenimiento SA de CV (Class "B" Shares)(a) 31,700 88,586 Dermet de Mexico SA (Class "B" Shares)(a) 26,477 3,493 Desarrolladora Homex SA de CV(a) 45,100 372,352 Empresas ICA SA de CV(a) 552,319 3,643,060 Fomento Economico Mexicano SA de CV (Series "UBD") 695,200 2,659,956 Grupo Aeroportuario del Sureste SAB de CV (Class "B" Shares) 72,826 445,725 Grupo Bimbo SA de CV (Series "A") 185,727 1,107,116 Grupo Carso SA de CV (Series "A1") 731,000 2,766,793 Grupo Elektra SA de CV 22,626 683,239 Grupo Financiero Banorte SA de CV (Class "O" Shares) 1,918,300 7,926,787 Grupo Financiero Inbursa SA de CV (Class "O" Shares) 1,290,508 3,547,203 Grupo Iusacell SA de CV(a) 142,465 1,892,433 Grupo Mexico SA de CV (Series "B") 546,830 3,437,008 Grupo Modelo SA de CV (Series "C") 236,600 1,127,038 Grupo Televisa SA (Series "CPO") 588,818 2,810,215 Impulsora del Desarrollo y el Empleo en America Latina SA de CV (Series "B1")(a) 1,268,730 1,659,975 Industrias CH SA (Series "B")(a) 72,952 307,468 Industrias Penoles SA de CV 44,229 931,604 Kimberly-Clark de Mexico SA de CV 214,970 938,720 Mexichem SA de CV 287,700 1,151,665 Organizacion Soriana SAB de CV (Class "B" Shares) 75,000 197,012 Promotora y Operadora de Infraestructura SA de CV(a) 207,900 712,410 SARE Holding SA de CV (Class "B" Shares)(a) 155,000 211,319 Telefonos de Mexico SA de CV (Series "L") 2,262,460 4,187,322 TV Azteca SA de CV (Series "CPO") 593,565 356,216 Urbi Desarrollos Urbanos SA de CV(a) 183,000 632,116 Vitro SA de CV (Series "A") 124,168 273,039 Wal-Mart de Mexico SA de CV (Series "V") 990,332 3,452,547 ----------------------------------------------------------------------------------------------------- $ 80,545,934 ----------------------------------------------------------------------------------------------------- Morocco -- 1.5% ----------------------------------------------------------------------------------------------------- Attijariwafa Bank 6,780 $ 2,688,779 Banque Centrale Populaire 1,400 415,091 Banque Marocaine du Commerce Exterieur (BMCE) 9,270 3,337,025 Banque Marocaine pour le Commerce et L' Industrie (BMCI) 2,200 324,342 Centrale Laitiere 420 343,668 Ciments du Maroc 1,665 545,603 Cosumar Compagnie Sucriere Marocaine et de Raffinage 1,637 180,214 Credit Immobilier et Hotelier(a) 4,600 373,141 CTM 1,560 68,394 Douja Promotion Groupe Addoha SA 4,300 1,854,346 Holcim Maroc SA 2,082 683,590 Lafarge Ciments 1,100 257,376 Lesieur Cristal SA 1,663 156,393 Managem 2,800 180,982 Maroc Telecom 196,941 3,714,911 ONA SA 12,023 2,466,764 RISMA(a) 3,100 173,976 Samir 6,247 645,895 Societe des Brasseries du Maroc 3,529 849,705 Societe Nationale d'Investissement 4,065 868,317 SONASID (Societe Nationale de Siderurgie) 1,172 449,695 Wafa Assurance 600 190,047 ----------------------------------------------------------------------------------------------------- $ 20,768,254 ----------------------------------------------------------------------------------------------------- Nigeria -- 0.9% ----------------------------------------------------------------------------------------------------- African Petroleum Plc(a) 894,000 $ 1,569,618 Ashaka Cement Plc 714,000 321,694 Cadbury Nigeria Plc(a) 400,000 125,021 Conoil Plc 322,000 229,906 Dangote Sugar Refinery Plc 450,600 148,862 First Bank of Nigeria Plc 4,546,609 1,723,778 Guaranty Trust Bank Plc 5,458,332 1,603,240 Guiness Nigeria Plc 418,750 461,726 Mobil Nigeria Plc 119,008 181,692 Nestle Foods Nigeria Plc 100,000 234,707 Nigeria Bottling Co., Plc 300,000 144,377 Nigerian Breweries Plc 401,000 166,658 Oando Plc 339,000 352,514 Oceanic Bank International Plc 2,408,750 764,099 PZ Cussons Nigeria Plc 2,770,832 622,791 Total Nigeria Plc 149,500 228,244 UAC of Nigeria Plc 1,581,000 683,893 UACN Property Development Co., Plc(a) 2,000,000 396,438 Unilever Nigeria Plc(a) 3,750,000 694,975 Union Bank of Nigeria Plc 2,815,999 1,028,473 United Bank for Africa Plc 1,512,000 634,809 Zenith Bank Ltd. 2,500,000 977,311 ----------------------------------------------------------------------------------------------------- $ 13,294,826 ----------------------------------------------------------------------------------------------------- Oman -- 0.8% ----------------------------------------------------------------------------------------------------- Al Jazeira Services Co. 131,120 $ 179,822 Alliance Housing Bank 285,200 208,900 Bank Dhofar SAOG 315,649 550,951 Bank Muscat SAOG 462,950 2,275,570 Dhofar International Development & Investment Holding Co. 143,200 260,736 National Bank of Oman Ltd. 25,850 503,571 Oman Cables Industry SAOG 154,500 1,097,552 Oman Cement Co., SAOG 17,000 287,013 Oman Flour Mills Co., Ltd. SAOG 88,400 574,026 Oman International Bank SAOG 57,280 591,933 Oman National Investment Corp. Holdings 8,000 218,244 Oman Telecommunications Co. 440,360 1,958,172 Ominvest 80,700 164,335 Port Services Corp. Ltd. 3,435 84,760 Raysut Cement Co., SAOG 279,210 1,422,395 Renaissance Holdings Co. 368,020 1,285,499 Shell Oman Marketing Co. 66,100 271,267 ----------------------------------------------------------------------------------------------------- $ 11,934,746 ----------------------------------------------------------------------------------------------------- Pakistan -- 0.7% ----------------------------------------------------------------------------------------------------- Adamjee Insurance Co., Ltd. 35,200 $ 204,688 Allied Bank Ltd. 28,200 59,557 Askari Commercial Bank Ltd. 90,750 143,449 Bank AL Habib Ltd. 63,700 79,799 Bank Alfalah Ltd.(a) 352,950 307,561 Bank of Punjab(a) 96,195 152,663 D.G. Khan Cement Co., Ltd. 66,000 101,423 Engro Chemical Pakistan Ltd. 104,000 448,487 Fauji Cement Co., Ltd.(a) 321,500 77,734 Fauji Fertilizer Bin Qasim Ltd. 141,000 96,212 Fauji Fertilizer Co., Ltd. 147,000 283,266 Faysal Bank Ltd. 115,000 122,701 GlaxoSmithKline Pakistan Ltd. 10,375 32,392 Hub Power Co., Ltd. 1,279,000 629,897 ICI Pakistan Ltd. 52,500 169,250 Indus Motor Co., Ltd. 112,000 580,128 Kot Addu Power Co., Ltd. 137,500 108,103 Lucky Cement Ltd. 219,500 414,957 Muslim Commercial Bank Ltd. 311,425 2,021,167 National Bank of Pakistan 119,945 451,850 National Refinery Ltd. 19,200 112,474 Nishat Chunian Ltd. 260,000 156,106 Nishat Mills Ltd. 290,300 495,571 Oil & Gas Development Co., Ltd. 95,000 184,142 Pak Suzuki Motor Co., Ltd.(a) 69,450 371,508 Pakistan Industrial Credit & Investment Corp. Ltd.(a) 106,150 101,198 Pakistan Oil Fields Ltd. 39,000 211,628 Pakistan Petroleum Ltd. 73,700 293,066 Pakistan State Oil Co., Ltd. 60,000 395,878 Pakistan Telecommunication Co., Ltd. 749,000 514,943 PICIC Insurance Ltd. 3,578 2,006 Shell Pakistan Ltd. 12,500 82,414 Standard Chartered Bank Pakistan Ltd.(a) 118,250 92,106 SUI Northern Gas Pipelines Ltd. 259,700 276,241 SUI Southern Gas Co., Ltd. 291,000 123,483 Telecard Ltd.(a) 517,000 91,026 ----------------------------------------------------------------------------------------------------- $ 9,989,074 ----------------------------------------------------------------------------------------------------- Peru -- 1.4% ----------------------------------------------------------------------------------------------------- Alicorp SA(a) 1,589,463 $ 1,527,922 Cementos Lima SA 4,981 139,239 Cia de Minas Buenaventura SA 41,440 2,337,570 Cia de Minas Buenaventura SA (ADR) 6,938 392,691 Cia Minera Atacocha SA (Class "B" Shares) (PFD Shares) 103,724 249,962 Cia Minera Milpo SA 393,297 945,173 Credicorp Ltd. 47,600 3,629,540 Edegel SA 1,814,811 951,019 Empresa Agroindustrial Casa Grande SA(a) 78,200 314,523 Ferreyros SA 310,816 663,959 Grana y Montero SA 288,553 577,877 Luz del Sur SAA 83,400 140,577 Minsur SA 353,485 991,079 Sociedad Minera Cerro Verde SA 47,600 1,266,160 Sociedad Minera el Brocal SA 30,100 341,589 Southern Copper Corp. 44,998 4,740,787 Volcan Cia Minera SA (Class "B" Shares) 137,778 354,102 ----------------------------------------------------------------------------------------------------- $ 19,563,769 ----------------------------------------------------------------------------------------------------- Philippines -- 2.6% ----------------------------------------------------------------------------------------------------- Aboitiz Equity Ventures, Inc. 12,558,000 $ 2,075,112 Ayala Corp. 115,027 1,553,901 Ayala Land, Inc. 5,263,008 1,788,165 Banco De Oro 1,273,000 1,852,290 Bank of the Philippine Islands 1,215,064 1,802,613 Benpres Holdings Corp.(a) 14,870,000 1,625,175 Filinvest Land, Inc.(a) 16,105,546 522,870 First Gen Corp. 190,000 271,546 First Philippine Holdings Corp. 274,000 476,746 Globe Telecom, Inc. 17,000 643,141 Holcim Philippines, Inc. 4,124,000 759,210 International Container Terminal Services, Inc. 1,193,000 1,309,009 JG Summit Holding, Inc. 7,774,200 2,150,735 Jollibee Foods Corp. 675,000 842,925 Manila Electric Co. 791,214 1,562,335 Megaworld Corp. 8,560,000 763,768 Metropolitan Bank & Trust Co. 1,054,875 1,377,988 Petron Corp. 9,477,423 1,294,399 Philippine Long Distance Telephone Co. 114,060 8,728,714 San Miguel Corp. (Class "B" Shares) 1,983,600 2,828,217 SM Investments Corp. 166,832 1,358,209 SM Prime Holdings, Inc. 3,442,040 837,546 Universal Robina Corp. 950,000 318,308 ----------------------------------------------------------------------------------------------------- $ 36,742,922 ----------------------------------------------------------------------------------------------------- Poland -- 2.9% ----------------------------------------------------------------------------------------------------- Agora SA 73,032 $ 1,630,616 Bank Millennium SA 196,243 917,129 Bank Pekao SA 47,245 4,355,170 Bank Przemyslowo-Handlowy BPH 3,226 136,433 Bank Zachodni WBK SA 7,350 747,521 Bioton SA(a) 504,200 181,559 BRE Bank SA(a) 4,000 818,381 Budimex SA(a) 9,900 368,993 Cersanit-Krasnystaw SA(a) 63,800 856,602 Ciech SA 8,500 416,628 ComArch SA(a) 4,100 299,500 ComputerLand SA 10,172 143,778 Debica SA 5,700 241,454 Dom Development SA 10,250 416,040 Echo Investment SA(a) 240,000 777,766 Getin Holding SA(a) 124,700 739,758 Globe Trade Centre SA(a) 45,000 813,158 Grupa Kety SA 2,600 169,693 Grupa Lotos SA 17,767 320,204 ING Bank Slaski SA w Katowicach 1,800 525,283 KGHM Polska Miedz SA 58,290 2,492,109 KGHM Polska Miedz SA (GDR) 11,300 994,400 Netia SA(a) 202,500 312,162 Orbis SA 60,680 1,708,958 PBG SA(a) 5,400 670,442 Polimex Mostostal SA 422,600 1,453,948 Polish Oil & Gas 320,015 660,880 Polska Grupa Farmaceutyczna SA 9,000 323,802 Polski Koncern Miesny Duda SA(a) 48,000 145,116 Polski Koncern Naftowy Orlen SA(a) 143,825 3,036,855 Powszechna Kasa Oszczednosci Bank Polski SA 168,936 3,601,367 Prokom Software SA 24,781 1,324,171 Softbank SA 32,523 968,366 Telekomunikacja Polska SA 505,806 4,601,281 Telekomunikacja Polska SA (GDR)(144A) 76,100 696,528 Telekomunikacja Polska SA (GDR) 169,000 1,546,823 TVN SA 188,235 1,908,283 Zaklad Przetworstwa Hutniczego Stalprodukt SA 1,000 304,823 ----------------------------------------------------------------------------------------------------- $ 41,625,980 ----------------------------------------------------------------------------------------------------- Qatar -- 1.7% ----------------------------------------------------------------------------------------------------- Barwa Real Estate Co.(a) 34,700 $ 491,827 Commercial Bank of Qatar 46,922 2,384,412 Doha Bank Ltd. 46,754 1,112,624 First Finance Co. 46,100 569,832 Industries Qatar 111,007 4,695,741 Masraf Al Rayan(a) 285,400 1,803,079 Qatar Electricity & Water Co. 14,200 415,256 Qatar Fuel 10,000 412,850 Qatar Gas Transport Co., Ltd. (NAKILAT)(a) 467,556 3,981,331 Qatar Insurance Co. 13,100 618,917 Qatar International Islamic Bank 24,450 745,478 Qatar Islamic Bank 41,100 1,772,452 Qatar National Bank 34,846 2,078,958 Qatar National Navigation 21,567 757,558 Qatar Real Estate Investment Co. 15,000 243,095 Qatar Shipping Co. 38,600 692,362 Qatar Telecom QSC 20,090 1,252,676 Salam International Investment Co., Ltd. 34,800 172,062 United Development Co. 30,700 333,095 ----------------------------------------------------------------------------------------------------- $ 24,533,605 ----------------------------------------------------------------------------------------------------- Romania -- 0.7% ----------------------------------------------------------------------------------------------------- Antibiotice SA 907,000 $ 752,662 Banca Transilvania(a) 6,620,881 2,429,271 BRD-Group Societe Generale 301,100 3,431,382 Impact SA(a) 5,425,614 1,099,898 Rompetrol Rafinare SA(a) 10,428,000 468,221 SNP Petrom SA 8,298,006 1,672,485 Transelectrica SA 46,400 748,727 ----------------------------------------------------------------------------------------------------- $ 10,602,646 ----------------------------------------------------------------------------------------------------- Russia -- 6.5% ----------------------------------------------------------------------------------------------------- Aeroflot-Russian International Airlines 100,000 $ 378,626 AvtoVAZ 2,100,000 3,984,992 Cherepovets MK Severstal 25,804 583,002 Gazprom Neft 77,000 476,145 Golden Telecom, Inc. (ADR) 3,100 312,945 Irkutskenergo (ADR) 13,500 803,250 JSC MMC Norilsk Nickel (ADR) 12,900 3,492,675 JSC Scientific Production Corp. Irkut (ADR) 18,333 508,741 LUKOIL (ADR) 79,100 6,837,239 Magadanenergo 1,000,000 62,300 Mobile TeleSystems 41,000 624,945 Mobile TeleSystems (ADR) 40,600 4,132,674 Mosenergo (ADR) 12,900 307,020 NovaTek OAO (GDR)(144A) 13,500 1,036,568 Novolipetsk Steel (GDR)(144A) 10,000 407,492 OAO Gazprom 944,106 13,187,790 OAO Gazprom (ADR) 240,100 13,589,755 OAO Rosneft Oil Co. 11,600 109,246 OAO Rosneft Oil Co. (GDR) 165,000 1,599,577 OGK-5 198,771 34,649 Polyus Gold (ADR) 11,392 $ 535,994 RAO Unified Energy System of Russia (ADR) 1,600 206,640 RAO Unified Energy System of Russia (PFD Shares)(a) 527,000 596,890 Rostelecom 75,000 883,085 Sberbank 2,526,100 10,531,121 Sberbank (GDR)(144A) 8,042 3,393,724 Sistema JSFC (GDR) 19,000 793,272 Surgutneftegaz (ADR) 57,200 3,505,146 Surgutneftegaz (ADR) (PFD Shares) 24,500 1,512,875 Tatneft (GDR)(144A) 10,850 1,309,539 TGC-5 JSC 6,561,301 5,905 Transneft 200 397,675 Unified Energy System (GDR)(144A)(a) 30,494 3,964,220 United Heavy Machinery Uralmash-Izhora Group(a) 44,500 349,998 Uralsvyazinform (ADR) 6,329 77,847 Vimpel-Communications (ADR) 109,900 4,571,840 VTB Bank OJSC (GDR)(144A)(a) 124,000 1,264,518 Wimm-Bill-Dann Foods OJSC (ADR) 49,500 6,486,480 ----------------------------------------------------------------------------------------------------- $ 92,856,400 ----------------------------------------------------------------------------------------------------- South Africa -- 5.6% ----------------------------------------------------------------------------------------------------- ABSA Group Ltd. 62,473 $ 1,015,424 Adcorp Holdings Ltd. 33,900 198,801 AECI Ltd. 25,300 293,570 African Bank Investments Ltd. 125,600 608,133 African Oxygen Ltd. (AFROX) 32,000 150,630 African Rainbow Minerals Ltd. 17,000 375,362 Allied Electronics Corp. Ltd. 23,200 163,699 Allied Electronics Corp. Ltd. (PFD Shares)(a) 136,400 859,827 Allied Technologies Ltd. 14,300 138,979 Anglo Platinum Ltd. 12,000 1,770,173 AngloGold Ashanti Ltd. 12,562 539,823 AngloGold Ashanti Ltd. (ADR) 20,619 882,699 ApexHi Properties Ltd. (Class "B" Shares) 42,300 115,007 Argent Industrial Ltd. 45,100 127,159 Aspen Pharmacare Holdings Ltd.(a) 107,910 601,271 Astral Foods Ltd. 10,300 227,275 Aveng Ltd. 244,800 2,164,322 AVI Ltd. 52,000 153,082 Barloworld Ltd. 110,200 1,729,431 Bell Equipment Ltd. 28,200 217,513 Bidvest Group Ltd. 168,037 2,957,540 Business Connexion Group 19,400 16,771 DataTec Ltd. 98,000 476,111 Discovery Holdings Ltd. 98,254 390,384 Distribution & Warehousing Network Ltd.(a) 61,700 157,461 Ellerine Holdings Ltd. 17,300 211,406 FirstRand Ltd. 1,101,885 3,178,323 Foschini Ltd. 48,323 340,086 Freeworld Coatings Ltd.(a) 110,200 170,113 Gold Fields Ltd. 130,180 1,873,373 Grindrod Ltd. 130,400 450,133 Group Five Ltd. 52,000 417,012 Growthpoint Properties Ltd. 222,300 508,433 Harmony Gold Mining Co., Ltd.(a) 49,800 512,536 Hulamin Ltd. 8,400 25,167 Hyprop Investments Ltd. 23,000 145,245 Illovo Sugar Ltd. 51,000 166,749 Impala Platinum Holdings Ltd. 114,968 3,994,827 Imperial Holdings Ltd. 45,012 687,317 Investec Ltd. 40,700 387,790 JD Group Ltd. 33,214 248,048 Johnnic Communications Ltd. 27,378 218,124 Johnnic Holdings Ltd.(a) 200 467 JSE Ltd. 23,000 290,865 Kumba Iron Ore Ltd. 18,900 791,662 Kumba Resources Ltd. 11,000 167,032 Lewis Group Ltd. 17,000 114,728 Liberty Group Ltd. 31,000 407,267 Massmart Holdings Ltd. 57,600 604,238 Medi-Clinic Corp. Ltd. 38,000 127,031 Metorex Ltd.(a) 55,000 176,685 Metropolitan Holdings Ltd. 65,000 144,021 Mittal Steel South Africa Ltd. 39,000 780,048 Mr. Price Group Ltd. 89,800 287,134 MTN Group Ltd. 667,480 12,501,674 Murray & Roberts Holdings Ltd. 179,800 2,668,168 Mvelaphanda Group Ltd. 295,100 442,741 Nampak Ltd. 65,700 207,534 Naspers Ltd. (Class "N" Shares) 100,075 2,368,627 Nedbank Group Ltd. 104,283 2,086,294 Network Healthcare Holdings Ltd.(a) 406,800 687,404 Pick'n Pay Stores Ltd. 104,260 571,315 Pretoria Portland Cement Co., Ltd. 210,839 1,347,352 PSG Group Ltd. 50,000 193,916 Remgro Ltd. 90,705 2,626,325 Reunert Ltd. 93,000 975,188 RMB Holdings Ltd. 162,400 704,672 Sanlam Ltd. 400,190 1,332,385 Santam Ltd. 8,910 135,299 Sappi Ltd. 38,320 545,558 Sasol Ltd. 97,736 4,843,158 Shoprite Holdings Ltd. 126,153 795,645 Spar Group Ltd. 57,300 505,366 Standard Bank Group Ltd. 234,253 3,432,386 Steinhoff International Holdings Ltd. 339,700 962,342 Sun International Ltd. 33,856 723,801 Super Group Ltd. 130,000 220,209 Telkom South Africa Ltd. 90,000 1,821,957 Tiger Brands Ltd. 62,016 1,521,851 Tongaat-Hulett 8,022 103,369 Trencor Ltd. 25,400 104,046 Truworths International Ltd. 116,000 459,652 Wilson Bayly Holmes-Ovcon Ltd. 9,400 189,349 Woolworths Holdings Ltd. 232,642 546,163 ----------------------------------------------------------------------------------------------------- $ 79,380,053 ----------------------------------------------------------------------------------------------------- South Korea -- 5.8% ----------------------------------------------------------------------------------------------------- Amorepacific Corp. 453 $ 341,649 Asiana Airlines, Inc. 13,400 120,855 Cheil Communications, Inc. 866 259,557 Cheil Industries, Inc. 6,500 358,164 CJ CheilJedang Corp.(a) 2,067 653,632 CJ Corp. 1,323 115,142 Daegu Bank 13,200 217,616 Daelim Industrial Co., Ltd. 2,500 472,711 Daesang Corp.(a) 29,700 381,079 Daesang Holdings Co., Ltd. 18,000 105,579 Daewoo Engineering & Construction Co., Ltd. 12,480 323,371 Daewoo International Corp. 4,700 196,608 Daewoo Motor Sales Corp. 5,000 202,966 Daewoo Securities Co., Ltd. 12,000 386,363 Daewoo Shipbuilding & Marine Engineering Co., Ltd. 8,500 463,655 DC Chemical Co., Ltd. 2,100 554,030 Dongkuk Steel Mill Co., Ltd. 9,400 471,623 Doosan Corp.(a) 2,400 458,935 Doosan Heavy Industries & Construction Co., Ltd. 5,400 717,678 Doosan Infracore Co., Ltd. 6,200 195,153 GS Engineering & Construction Corp. 4,000 657,759 GS Holdings Corp. 5,554 340,810 Hana Financial Group, Inc. 18,765 1,007,511 Hanarotelecom, Inc.(a) 44,200 493,786 Hanil Cement Co., Ltd. 1,200 138,667 Hanjin Heavy Industries & Construction Co., Ltd.(a) 7,306 537,774 Hanjin Heavy Industries & Construction Holdings Co., Ltd. 1,134 49,878 Hanjin Shipping Co., Ltd. 16,550 694,741 Hanjin Transportation Co., Ltd. 3,200 133,618 Hankook Tire Co., Ltd. 17,560 332,688 Hanmi Pharm Co., Ltd. 1,628 284,837 Hansol Paper Co., Ltd.(a) 7,700 137,456 Hanwha Chemical Corp. 9,000 175,406 Hanwha Corp. 9,800 731,336 Hanwha Securities Co., Ltd. 40,000 960,390 Hite Brewery Co., Ltd. 1,950 294,819 Honam Petrochemical Corp. 2,600 288,796 Hotel Shilla Co., Ltd. 6,120 145,038 Hynix Semiconductor, Inc.(a) 31,330 858,111 Hyosung Corp. 4,800 296,404 Hyundai Department Store Co., Ltd. 1,400 176,437 Hyundai Development Co. 6,700 647,697 Hyundai Engineering & Construction Co., Ltd.(a) 6,500 604,279 Hyundai Heavy Industries Co., Ltd. 4,000 1,864,401 Hyundai Merchant Marine Co., Ltd. 14,600 662,392 Hyundai Mipo Dockyard Co., Ltd. 880 267,132 Hyundai Mobis 9,500 877,820 Hyundai Motor Co. 23,720 1,797,742 Hyundai Motor Co. (PFD Shares) 6,500 238,668 Hyundai Steel Co. 8,500 709,248 Industrial Bank of Korea 12,600 235,077 Kangwon Land, Inc. 36,658 955,855 KCC Corp. 500 280,162 Kia Motors Corp.(a) 22,300 238,184 Kookmin Bank 26,080 1,922,461 Kookmin Bank (ADR) 18,084 1,325,919 Korea Electric Power Corp. 63,240 2,659,176 Korea Express Co., Ltd.(a) 2,000 214,314 Korea Gas Corp. 9,000 618,271 Korea Kumho Petrochemical Co., Ltd. 2,220 139,519 Korea Line Corp. 920 159,993 Korea Zinc Co., Ltd. 2,300 317,317 Korean Air Lines Co., Ltd. 12,686 1,029,860 KT Corp. 68,030 3,553,942 KT Freetel Co., Ltd. 17,600 567,132 KT&G Corp. 27,980 2,375,323 KTBNetwork Co., Ltd.(a) 80,000 991,698 Kumho Industrial Co., Ltd. 3,050 181,475 LG Chem Ltd. 4,562 431,543 LG Chem Ltd. (GDR)(144A) 9,240 442,233 LG Corp. 8,900 655,590 LG Dacom Corp. 10,300 231,686 LG Electronics, Inc. 11,819 1,248,626 LG Household & Health Care Ltd. 1,100 226,655 LG Telecom Ltd.(a) 37,300 389,458 LG.Philips LCD Co., Ltd.(a) 12,600 666,311 Lotte Chilsung Beverage Co., Ltd. 100 111,707 Lotte Confectionery Co., Ltd. 90 162,491 Lotte Shopping Co., Ltd. 1,620 709,851 LS Cable Ltd. 3,500 333,220 Macquarie Korea Infrastructure Fund 13,900 100,489 NHN Corp.(a) 4,010 956,211 ORION Corp. 600 159,300 Pacific Corp. 2,641 435,769 Poongsan Corp. 5,600 130,175 POSCO 10,190 6,156,597 S-Oil Corp. 7,700 646,665 Samsung Corp. 13,630 1,034,100 Samsung Electro-Mechanics Co., Ltd. 4,200 217,388 Samsung Electronics Co., Ltd. 12,008 7,066,678 Samsung Electronics Co., Ltd. (PFD Shares) 1,950 884,714 Samsung Engineering Co., Ltd. 2,300 227,582 Samsung Fine Chemicals Co., Ltd. 4,300 198,973 Samsung Fire & Marine Insurance Co., Ltd. 7,734 2,081,554 Samsung Heavy Industries Co., Ltd. 16,400 696,094 Samsung SDI Co., Ltd. 2,800 196,924 Samsung Securities Co., Ltd. 3,870 369,029 Samsung Techwin Co., Ltd. 4,000 177,063 Shinhan Financial Group Co., Ltd. 47,640 2,702,370 Shinsegae Co., Ltd. 1,870 1,441,018 SK Chemicals Co., Ltd. 3,200 255,125 SK Energy Co., Ltd.(a) 14,271 2,722,288 SK Holdings Co., Ltd. 1,537 321,263 SK Networks Co., Ltd.(a) 4,900 116,345 SK Securities Co., Ltd. 470,000 1,909,922 SK Telecom Co., Ltd. 4,780 1,260,509 SK Telecom Co., Ltd. (ADR) 49,526 1,477,856 Ssangyong Cement Industrial Co., Ltd.(a) 8,600 147,497 STX Corp. 2,130 187,248 STX Shipbuilding Co., Ltd. 5,500 289,174 Taekwang Industrial Co., Ltd. 180 237,486 Taihan Electric Wire Co., Ltd. 2,780 143,305 Woongjin Coway Co., Ltd. 3,900 125,903 Woori Finance Holdings Co., Ltd. 17,200 345,268 Yuhan Corp. 1,050 226,620 ----------------------------------------------------------------------------------------------------- $ 82,421,558 ----------------------------------------------------------------------------------------------------- Taiwan -- 5.8% ----------------------------------------------------------------------------------------------------- Acer, Inc. 383,213 $ 742,810 Advanced Semiconductor Engineering, Inc. 370,782 369,378 Advanced Semiconductor Engineering, Inc. (ADR) 31,562 158,441 Advantech Co., Ltd. 47,253 107,181 Altek Corp. 121,426 163,080 ASE Test Ltd.(a) 860,000 150,039 Asia Cement Corp. 485,794 703,899 Asia Optical Co., Inc. 95,230 265,081 Asustek Computer, Inc. 491,675 1,463,025 AU Optronics Corp. 724,501 1,397,204 AU Optronics Corp. (ADR) 31,211 599,251 Catcher Technology Co., Ltd. 64,138 369,635 Cathay Financial Holding Co., Ltd. 1,141,058 2,357,701 Cathay Real Estate Development Co., Ltd. 165,000 76,054 Chang Hwa Commercial Bank 745,000 405,528 Cheng Shin Rubber Industry Co., Ltd. 412,250 665,470 Cheng Uei Precision Industry Co., Ltd. 25,331 55,492 Chi Mei Optoelectronics Corp. 707,461 983,560 China Airlines 504,623 224,997 China Development Financial Holding Corp. 1,899,247 745,719 China Motor Corp. 148,930 111,804 China Steel Corp. 1,508,306 2,006,453 Chinatrust Financial Holding Co., Ltd.(a) 1,371,358 967,590 Chunghwa Picture Tubes Ltd.(a) 660,000 226,442 Chunghwa Telecom Co., Ltd.(b) 1,677,100 3,406,993 Chunghwa Telecom Co., Ltd. (ADR) 49,163 1,037,831 CMC Magnetics Corp.(a) 370,000 127,770 Compal Electronics, Inc. 565,536 615,802 Coretronic Corp. 83,640 111,472 D-Link Corp. 117,810 205,383 Delta Electronics, Inc. 212,730 720,333 Dynapack International Technology Corp. 56,000 180,100 E.Sun Financial Holding Co., Ltd.(a) 615,023 318,075 Epistar Corp. 49,940 212,273 EVA Airways Corp.(a) 736,032 304,080 Evergreen Marine Corp. 754,292 678,076 Everlight Electronics Co., Ltd. 45,172 163,570 Far Eastern Department Stores Ltd. 338,000 404,931 Far Eastern International Bank(a) 212,338 67,901 Far Eastern Textile Ltd. 575,943 669,456 Far EasTone Telecommunications Co., Ltd. 1,253,000 1,580,127 Firich Enterprises Co., Ltd. 17,000 162,361 First Financial Holding Co., Ltd. 818,131 601,831 Formosa Chemicals & Fibre Corp. 460,160 1,169,713 Formosa Petrochemical Corp. 956,460 2,845,865 Formosa Plastics Corp. 899,941 2,505,118 Formosa Taffeta Co., Ltd. 545,000 546,161 Foxconn Technology Co., Ltd. 76,072 611,011 Fubon Financial Holding Co., Ltd. 884,000 779,880 Fuhwa Financial Holdings Co., Ltd.(a) 1,227,030 791,649 Great Wall Enterprise Co., Ltd. 194,000 212,967 HannStar Display Corp.(a) 561,384 247,070 High Tech Computer Corp. 86,944 1,592,156 Hon Hai Precision Industry Co., Ltd. 779,318 4,803,309 Hotai Motor Co., Ltd. 98,000 253,984 Hua Nan Financial Holdings Co., Ltd. 510,000 332,718 Innolux Display Corp. 253,000 843,440 Inventec Co., Ltd. 240,240 138,066 KGI Securities Co., Ltd. 283,000 144,354 King Yuan Electronics Co., Ltd. 138,976 67,134 Kinsus Interconnect Technology Corp. 56,000 174,504 Largan Precision Co., Ltd. 43,294 569,038 Lite-On Technology Corp. 312,459 539,976 Macronix International Co., Ltd. 455,874 207,671 MediaTek, Inc. 153,128 1,962,771 Mega Financial Holding Co., Ltd. 1,290,000 789,785 Merry Electronics Co., Ltd. 63,000 192,144 Mitac International Corp. 124,110 120,713 Mosel Vitelic, Inc. 164,800 135,223 Motech Industries, Inc. 31,631 287,480 Nan Kang Rubber Tire Co., Ltd. 161,000 196,507 Nan Ya Plastics Corp. 1,163,610 3,057,711 Nan Ya Printed Circuit Board Corp. 22,581 153,143 Nanya Technology Corp. 173,319 97,137 Novatek Microelectronics Corp. Ltd. 50,741 192,419 Phoenix Precision Technology Corp. 78,657 66,096 PixArt Imaging, Inc. 11,000 81,292 Polaris Securities Co., Ltd. 324,323 150,005 Pou Chen Corp. 1,150,819 1,072,049 Powerchip Semiconductor Corp. 994,153 418,976 Powertech Technology, Inc. 49,450 174,061 President Chain Store Corp. 545,000 1,427,340 ProMOS Technologies, Inc. 1,055,000 280,798 Qisda Corp.(a) 224,000 244,560 Quanta Computer, Inc. 357,922 505,081 Realtek Semiconductor Corp. 53,471 183,191 RichTek Technology Corp. 21,850 195,094 Shin Kong Financial Holding Co., Ltd. 668,535 455,439 Siliconware Precision Industries Co. (ADR) 73,869 656,695 Sincere Navigation 160,000 268,956 Sino-American Silicon Products, Inc. 44,095 355,154 SinoPac Financial Holdings Co., Ltd. 1,044,523 389,621 Sunplus Technology Co., Ltd. 68,331 101,836 Synnex Technology International Corp. 490,170 1,208,963 Tainan Spinning Co., Ltd. 460,000 181,417 Taishin Financial Holdings Co., Ltd.(a) 725,001 298,982 Taiwan Business Bank(a) 345,539 105,918 Taiwan Cement Corp. 349,430 479,886 Taiwan Cooperative Bank 487,971 344,788 Taiwan Glass Industrial Corp. 192,000 207,008 Taiwan Mobile Co., Ltd. 1,845,000 2,455,907 Taiwan Semiconductor Manufacturing Co., Ltd. 3,908,528 7,410,517 Taiwan Tea Corp.(a) 419,000 204,110 Tatung Co., Ltd.(a) 358,000 172,273 Teco Electric & Machinery Co., Ltd. 389,000 192,594 Teco Electric & Machinery Co., Ltd. (GDR)(144A) 42 210 Tripod Technology Corp. 45,600 163,373 U-Ming Marine Transport Corp. 202,000 551,795 Uni-President Enterprises Corp. 2,412,560 3,219,272 Unimicron Technology Corp. 107,100 186,208 United Microelectronics Corp. 1,008,001 626,223 United Microelectronics Corp. (ADR) 119,196 412,418 Via Technologies, Inc.(a) 142,000 79,501 Wafer Works Corp. 38,000 218,149 Walsin Lihwa Corp. 1,085,980 443,927 Wan Hai Lines Ltd. 550,000 493,728 Waterland Financial Holdings 343,740 110,690 Winbond Electronics Corp. 338,000 92,993 Wintek Corp. 241,812 328,245 Wistron Corp. 127,188 233,604 Yageo Corp. 303,000 105,612 Yang Ming Marine Transport 295,209 225,323 Yuen Foong Yu Paper Manufacturing Co., Ltd. 315,562 117,332 Yulon Motor Co., Ltd. 517,705 493,155 Zinwell Corp. 85,000 279,434 ----------------------------------------------------------------------------------------------------- $ 82,114,815 ----------------------------------------------------------------------------------------------------- Thailand -- 3.0% ----------------------------------------------------------------------------------------------------- Advanced Info Service Pcl(c) 732,900 $ 2,088,890 Airports of Thailand Pcl(c) 310,400 520,635 Amata Corp. Pcl(c) 225,600 118,543 Asian Property Development Pcl(c) 1,841,000 341,584 Bangkok Bank Pcl 513,400 1,784,956 Bangkok Bank Pcl(c) 144,900 511,753 Bangkok Bank Pcl (NVDR) 35,000 121,686 Bangkok Dusit Medical Services Pcl(c) 781,000 776,711 Bangkok Expressway Pcl(c) 470,900 332,712 Bangkok Land Pcl(a)(c) 4,038,900 88,727 Bank of Ayudhya Pcl(c) 703,900 551,054 Bank of Ayudhya Pcl 799,300 619,098 BankThai Pcl(a)(c) 643,800 25,993 Banpu Pcl(c) 82,900 1,003,039 Banpu Pcl 19,600 229,916 BEC World Pcl(c) 975,300 832,414 Big C Supercenter Pcl(c) 113,000 156,828 Cal-Comp Electronics (Thailand) Pcl(c) 1,800,000 374,054 Central Pattana Pcl(c) 540,700 401,291 Ch. Karnchang Pcl(c) 968,000 242,826 Charoen Pokphand Foods Pcl(c) 5,627,300 743,402 CP Seven Eleven Pcl(c) 2,166,800 701,146 Delta Electronics (Thailand) Pcl(c) 934,670 604,893 Electricity Generating Pcl 75,000 247,929 Electricity Generating Pcl(c) 114,500 390,901 G Steel Pcl(c) 3,786,500 82,059 Glow Energy Pcl(c) 220,000 218,792 Hana Microelectronics Pcl(c) 1,084,100 695,163 IRPC Pcl(c) 3,989,000 757,892 Italian-Thai Development Pcl(a)(c) 4,749,500 1,151,551 Kasikornbank Pcl(c) 784,600 2,018,498 Kasikornbank Pcl 94,900 242,981 Kiatnakin Bank Pcl(c) 125,000 104,832 Krung Thai Bank Pcl(c) 2,016,100 614,203 Land & Houses Pcl 2,957,000 651,060 Land & Houses Pcl(c) 1,130,000 299,271 Loxley Pcl(c) 2,001,400 137,843 Major Cineplex Group Pcl(c) 754,100 425,350 MBK Pcl(c) 64,500 134,036 Minor International Pcl(c) 1,154,340 623,690 Phatra Securities Pcl(c) 108,600 107,198 Precious Shipping Pcl(c) 386,000 320,855 PTT Aromatics & Refining Pcl(a)(c) 442,058 560,790 PTT Chemical Pcl(c) 127,289 468,572 PTT Exploration & Production Pcl(c) 397,700 1,936,256 PTT Pcl(c) 452,300 5,062,108 Quality House Pcl(c) 4,710,000 295,030 Ratchaburi Electricity Generating Holding Pcl(c) 578,300 785,430 Saha-Union Pcl(c) 98,700 53,328 Sahaviriya Steel Industries Pcl(c) 3,429,300 82,462 Samart Corp. Pcl(c) 794,600 192,251 Shin Corp. Pcl(c) 426,000 392,044 Siam Cement Pcl 132,500 906,161 Siam Cement Pcl(c) 125,400 865,521 Siam Cement Pcl (NVDR) 31,000 212,007 Siam City Bank Pcl(c) 267,000 117,964 Siam City Cement Pcl(c) 42,900 328,579 Siam Commercial Bank Pcl(c) 722,800 1,850,720 Siam Makro Pcl(c) 157,600 463,185 Sino Thai Engineering & Construction Pcl(a)(c) 1,553,400 253,635 Thai Airways International Pcl(c) 520,200 571,394 Thai Beverage Pcl 3,621,000 638,996 Thai Oil Pcl(c) 385,100 988,902 Thai Plastic & Chemicals Pcl(c) 215,100 127,074 Thai Stanley Electric Pcl(c) 26,000 118,866 Thai Union Frozen Products Pcl(c) 583,000 381,687 Thanachart Capital Pcl(c) 523,300 215,938 Thoresen Thai Agencies Pcl(c) 359,900 504,832 Ticon Industrial Connection Pcl(c) 191,400 117,618 TISCO Bank Pcl(c) 150,000 131,217 TMB Bank Pcl(a)(c) 3,870,000 167,736 Total Access Communication Pcl(a) 475,000 541,273 TPI Polene Pcl(c) 305,500 67,566 True Corp. Pcl(a)(c) 1,482,068 252,988 ----------------------------------------------------------------------------------------------------- $ 42,048,385 ----------------------------------------------------------------------------------------------------- Turkey -- 3.4% ----------------------------------------------------------------------------------------------------- Acibadem Saglik Hizmetleri ve Ticaret AS 25,925 $ 182,817 Adana Cimento Sanayii TAS 22,000 131,797 Akbank TAS 449,611 3,320,720 Akcansa Cimento AS 38,000 229,811 Akenerji Elektrik Uretim AS(a) 33,055 295,226 Aksigorta AS 52,000 304,641 Alarko Holding AS 87,849 275,185 Anadolu Anonim Turk Sigorta Sirketi 60,362 102,590 Anadolu Cam Sanayii AS 55,505 131,310 Anadolu Efes Biracilik ve Malt Sanayii AS 165,748 1,957,789 Arcelik AS 61,583 426,306 Aselsan Elektronik Sanayi ve Ticaret AS 7,600 171,500 Aygaz AS 148,417 661,165 BIM Birlesik Magazalar AS 7,000 624,525 Bursa Cimento Fabrikasi AS 27,188 252,877 Cimsa Cimento Sanayi ve Ticaret AS 64,400 473,827 Dogan Sirketler Grubu Holding AS(a) 525,623 992,097 Dogan Yayin Holding AS(a) 140,977 570,487 Dogus Otomotiv Servis ve Ticaret AS 31,400 233,663 Eczacibasi Ilac Sanayi ve Ticaret AS(a) 40,500 179,162 Enka Insaat ve Sanayi AS 188,848 3,298,267 Eregli Demir ve Celik Fabrikalari TAS 352,215 3,087,054 Ford Otomotiv Sanayi AS 42,700 439,141 Haci Omer Sabanci Holding AS 315,237 1,728,057 Hurriyet Gazetecilik ve Matbaacilik AS(a) 82,837 254,873 Ihlas Holding AS(a) 231,300 208,808 Is Gayrimenkul Yatirim Ortakligi AS 132,286 193,509 Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS (Class "D" Shares)(a) 373,700 438,687 KOC Holding AS(a) 371,214 2,004,055 Migros Turk TAS 49,321 961,554 Nortel Networks Netas Telekomunikasyon AS 1,764 42,389 Petkim Petrokimya Holding AS(a) 89,300 653,919 Sekerbank TAS(a) 29,400 130,025 Tofas Turk Otomobil Fabrikasi AS 43,900 229,247 Trakya CAM Sanayii AS 213,383 508,631 Tupras-Turkiye Petrol Rafinerileri AS 94,741 2,761,385 Turk Hava Yollari Anonim Ortakligi (THY) AS(a) 133,348 977,329 Turk Sise ve Cam Fabrikalari AS 183,606 369,017 Turk Traktor ve Ziraat Makineleri AS 17,700 229,176 Turkcell Iletisim Hizmet AS (ADR) 38,494 1,061,280 Turkcell Iletisim Hizmetleri AS 547,494 6,013,506 Turkiye Garanti Bankasi AS 598,087 5,336,986 Turkiye Is Bankasi 452,879 2,828,923 Turkiye Sinai Kalkinma Bankasi AS(a) 79,999 131,383 Turkiye Vakiflar Bankasi T.A.O. 155,321 546,482 Ulker Gida Sanayi ve Ticaret AS 89,128 362,159 Yapi ve Kredi Bankasi AS(a) 358,293 1,257,054 Yazicilar Holding AS 39,000 335,178 Zorlu Enerji Elektrik Uretim AS(a) 36,100 150,680 ----------------------------------------------------------------------------------------------------- $ 48,056,249 ----------------------------------------------------------------------------------------------------- United Arab Emirates -- 1.0% ----------------------------------------------------------------------------------------------------- Amlak Finance (PJSC)(a) 264,200 $ 369,043 Arabtec Holding Co. 676,200 1,702,994 Aramex (PJSC)(a) 3,128,400 2,582,160 Dubai Investments (PJSC) 682,000 1,010,092 Dubai Islamic Bank 650,239 1,947,565 Emaar Properties (PJSC) 1,374,700 5,548,115 National Central Cooling Co. (Tabreed)(a) 1,307,880 1,214,363 Union Properties(a) 405,000 561,754 ----------------------------------------------------------------------------------------------------- $ 14,936,086 ----------------------------------------------------------------------------------------------------- Zimbabwe -- 0.1% ----------------------------------------------------------------------------------------------------- Ariston Holdings Ltd.(a) 597,393 $ 9,965 Barclays Bank Zimbabwe 754,686 51,838 Dawn Properties(a) 369,831 13,427 Delta Corp. Ltd. 807,488 316,939 Econet Wireless Holdings Ltd. 96,681 151,789 Hwange Colliery Co., Ltd.(a) 693,000 408,003 Meikles Africa Ltd. 60,013 100,109 NMBZ Holdings Ltd. 994,355 13,660 OK Zimbabwe 211,870 3,160 Old Mutual Plc 80,448 268,394 Pelhams Ltd.(a) 86,835 426 Zimbabwe Sun Ltd. 123,277 8,468 ----------------------------------------------------------------------------------------------------- $ 1,346,178 ----------------------------------------------------------------------------------------------------- Total Common Stocks (cost $709,422,295) $1,380,658,799 ----------------------------------------------------------------------------------------------------- Investment Funds -- 1.8% Framlington Bulgaria Fund Ltd.(d) 78,180 $ 11,727 Genesis Chile Fund Ltd. 3,400 13,974 Saudi Arabia Investment Fund Ltd.(a) 194,982 14,292,181 Societe Generale Baltic Republic Fund(d) 12,723 9,542 Societe Generale Romania Fund(a)(d) 6,450 7,740 Vietnam Enterprise Investments Ltd.(a) 1,963,733 10,309,598 Vietnam Growth Fund Ltd.(a) 17,646 520,557 ----------------------------------------------------------------------------------------------------- Total Investment Funds (cost $13,660,836) $ 25,165,319 ----------------------------------------------------------------------------------------------------- Rights(a) -- 0.1% Banque Marocaine pour le Commerce et L' Industrie 2,200 $ 64,868 Douja Promotion Groupe Addoha SA(b) 4,300 3,854 Fauji Cement Co., Ltd. 279,705 0 Kumho Industrial Co., Ltd. 366 5,318 Lafarge Ciments 1,100 698,727 SP Setia Bhd 35,000 4,445 Wing Fat Printing Co., Ltd.(b) 840 0 ----------------------------------------------------------------------------------------------------- Total Rights (cost $36,769) $ 777,212 ----------------------------------------------------------------------------------------------------- Warrants(a) -- 0.1% Gazit Globe Ltd. Call Warrant (Gazit Globe (1982) Ltd. (Israel)), expiring 6/3/08, strike ILS 4,761 3,625 $ 1,627 J.P. Morgan International Derivatives Ltd. Call Warrant (Bharti Televentures (India)), expiring 10/28/08, strike INR.0001(144A) 81,000 2,028,807 ----------------------------------------------------------------------------------------------------- Total Warrants (cost $655,582) $ 2,030,434 ----------------------------------------------------------------------------------------------------- Total Long-Term Investments - 99.0% (cost $723,775,482) $1,408,631,764 ----------------------------------------------------------------------------------------------------- Short-Term Investments -- 0.7% Principal Security Amount (000) Value ----------------------------------------------------------------------------------------------------- Repurchase Agreements ----------------------------------------------------------------------------------------------------- State Street Bank & Trust Corp. Repurchase Agreement, dated 12/31/07, 3.90%, due 1/2/08 (cost $10,510,000)(e) $ 10,510 $ 10,510,000 ----------------------------------------------------------------------------------------------------- Total Repurchase Agreements - 0.7% (cost $10,510,000) $ 10,510,000 ----------------------------------------------------------------------------------------------------- Total Investments - 99.7% (cost $734,285,482) $1,419,141,764 ----------------------------------------------------------------------------------------------------- Other Assets, Less Liabilities -- 0.3% $ 4,640,344 ----------------------------------------------------------------------------------------------------- Net Assets -- 100% $1,423,782,108 ----------------------------------------------------------------------------------------------------- 144A - Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2007, the aggregate value of the securities is $26,234,925 or 1.8% of the Fund's net assets. ADR - American Depositary Receipt GDR - Global Depositary Receipt NVDR - Non-Voting Depositary Receipt PFD Shares - Preferred Shares (a) Non-income producing security. (b) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees. (c) Indicates a foreign registered security. Shares issued to foreign investors in markets that have foreign ownership limits. (d) Investment fund is in the process of being liquidated. (e) Repurchase price of $10,512,277. Collateralized by $10,590,000 Federal National Mortgage Association 4.25% due 5/15/2009. The aggregate market value, including accrued interest, of the collateral was $10,721,973. Industry Classification as of December 31, 2007 PERCENTAGE OF TOTAL SECTOR INVESTMENTS MARKET VALUE Financials 23.1% $ 328,160,731 Telecommunication Services 14.2% 201,278,324 Industrials 10.7% 152,410,903 Energy 10.5% 149,288,862 Materials 10.4% 146,815,901 Consumer Staples 9.5% 134,235,775 Consumer Discretionary 6.7% 94,547,693 Utilities 4.9% 70,070,299 Diversified 4.2% 59,915,075 Technology 3.1% 43,935,236 Investment Funds 1.8% 25,165,319 Other 0.9% 13,317,646 --------------------------------------------------------------------------------------------------- Total 100.0% 1,419,141,764 Currency Concentration of Portfolio as of December 31, 2007 PERCENTAGE OF TOTAL CURRENCY INVESTMENTS VALUE United States Dollar 17.1% $ 243,375,309 Indian Rupee 5.8% 81,645,392 Hong Kong Dollar 5.7% 80,690,319 Mexican Peso 5.7% 80,545,933 Brazilian Real 5.7% 80,254,178 New Taiwan Dollar 5.6% 79,249,968 South Korean Won 5.6% 79,180,868 South Africa Rand 5.5% 78,497,353 Indonesian Rupiah 3.3% 47,051,309 New Turkish Lira 3.3% 46,994,970 Malaysian Ringgit 3.2% 46,107,154 Hungarian Forint 3.0% 42,979,179 Thailand Baht 2.9% 40,868,115 Czech Koruna 2.8% 39,819,117 Polish Zloty 2.7% 38,388,229 Philippine Peso 2.6% 36,742,922 Israeli Shekel 2.2% 30,937,725 Other 17.3% 245,813,724 --------------------------------------------------------------------------------------------------- Total 100.0% 1,419,141,764 See notes to financial statements
Eaton Vance Tax-Managed Emerging Markets Fund as of December 31, 2007 FINANCIAL STATEMENTS (Unaudited) Statement of Assets and Liabilities As of December 31, 2007 Assets ------------------------------------------------------------------------------- Investments in securities, at value (identified cost, $734,285,482) $1,419,141,764 Cash 1,797 Foreign currency, at value (identified cost $534,192) 462,757 Receivable for Fund shares sold 12,466,853 Dividends and interest receivable 1,337,357 Receivable for securities sold 186,000 Tax reclaims receivable 66,419 ------------------------------------------------------------------------------- Total assets $1,433,662,947 ------------------------------------------------------------------------------- Liabilities ------------------------------------------------------------------------------- Payable for Fund shares redeemed $ 8,042,362 Accrued capital gains taxes 1,838,366 Payable for investment securities purchased 111 ------------------------------------------------------------------------------- Total liabilities $ 9,880,839 ------------------------------------------------------------------------------- Net Assets $1,423,782,108 ------------------------------------------------------------------------------- Sources of Net Assets ------------------------------------------------------------------------------- Paid-in capital $ 757,268,579 Distributions in excess of net investment income (14,923,399) Distributions in excess of net realized gain on investments and foreign currency related transactions (1,531,020) Net unrealized appreciation of investments and foreign currencies 682,967,948 ------------------------------------------------------------------------------- Total $1,423,782,108 ------------------------------------------------------------------------------- Class I Shares ------------------------------------------------------------------------------- Net Assets $1,423,782,108 Shares Outstanding 26,746,156 Net Asset Value and Offering Price Per Share* (net assets/shares of beneficial interest outstanding) $ 53.23 ------------------------------------------------------------------------------- * Redemption price per share is equal to net asset value minus any applicable redemption fee. Statement of Operations Six Months Ended December 31, 2007 Investment Income ----------------------------------------------------------------------------- Dividends (net of foreign taxes, $1,343,376) $ 11,074,571 Interest 170,356 ----------------------------------------------------------------------------- Total income $ 11,244,927 ----------------------------------------------------------------------------- Expenses ----------------------------------------------------------------------------- Management fee $ 2,936,644 Administration fees 3,262,938 Other expenses 21,876 ----------------------------------------------------------------------------- Total expenses $ 6,221,458 ----------------------------------------------------------------------------- Net investment income $ 5,023,469 ----------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) ----------------------------------------------------------------------------- Net realized gain (loss) -- Investment transactions $ 15,833,837(1) Foreign currency related transactions (158,787) ----------------------------------------------------------------------------- Net realized gain $ 15,675,050 ----------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments $154,941,337(2) Foreign currencies (32,437) ----------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) $154,908,900 ----------------------------------------------------------------------------- Net realized and unrealized gain $170,583,950 ----------------------------------------------------------------------------- Net increase in net assets from operations $175,607,419 ----------------------------------------------------------------------------- (1) Net of foreign capital gains taxes of $99,931 (See Note 1(c)). (2) Net of change in accrued capital gains taxes of $495,640 (See Note 1(c)). See notes to financial statements Eaton Vance Tax-Managed Emerging Markets Fund as of December 31, 2007 FINANCIAL STATEMENTS CONT'D Statements of Changes in Net Assets
Six Months Ended Increase (Decrease) December 31, 2007 Year Ended in Net Assets (Unaudited) June 30, 2007 ------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 5,023,469 $ 14,530,047 Net realized gain on investment and foreign currency transactions 15,675,050 21,977,134 Net change in unrealized appreciation (depreciation) on investment and foreign currencies 154,908,900 315,965,528 -------------------------------------------------------------------------------------------------- Net increase in net assets from operations $ 175,607,419 $ 352,472,709 -------------------------------------------------------------------------------------------------- Distributions to shareholders from -- Net investment income $ (21,632,153) $ (15,054,280) Net realized gains (21,394,950) -- -------------------------------------------------------------------------------------------------- Net decrease in net assets from distributions to shareholders $ (43,027,103) $ (15,054,280) -------------------------------------------------------------------------------------------------- Fund share transactions -- Proceeds from sale of shares $ 207,098,478 $ 333,673,359 Net asset value of shares issued as reinvestment of dividends 33,197,997 11,725,047 Cost of shares redeemed (118,831,799) (73,397,196) Redemption fees (Note 1) 1,687,416 995,835 -------------------------------------------------------------------------------------------------- Net increase resulting from Fund share transactions $ 123,152,092 $ 272,997,045 -------------------------------------------------------------------------------------------------- Net increase in net assets $ 255,732,408 $ 610,415,474 -------------------------------------------------------------------------------------------------- Net Assets -------------------------------------------------------------------------------------------------- At beginning of period $1,168,049,700 $ 557,634,226 -------------------------------------------------------------------------------------------------- At end of period $1,423,782,108 $1,168,049,700 -------------------------------------------------------------------------------------------------- Undistributed (distributions in excess of) net investment income included in net assets at end of period $ (14,923,399) $ 1,685,285 -------------------------------------------------------------------------------------------------- See notes to financial statements
Eaton Vance Tax-Managed Emerging Markets Fund as of December 31, 2007 FINANCIAL STATEMENTS CONT'D Financial Highlights
Six Months Ended Year Ended June 30, December 31, 2007 -------------------------------------------------------------- (Unaudited) 2007 2006 2005 2004(a) 2003 -------------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period $ 47.67 $ 31.60 $ 23.88 $ 17.34 $ 13.09 $ 11.24 -------------------------------------------------------------------------------------------------------------------------------- Income from operations -------------------------------------------------------------------------------------------------------------------------------- Net investment income(b) $ 0.20 $ 0.70 $ 0.55 $ 0.42 $ 0.27 $ 0.26 Net realized and unrealized gain 6.96 16.07 7.81 6.35 4.68 1.68 -------------------------------------------------------------------------------------------------------------------------------- Total income from operations $ 7.16 $ 16.77 $ 8.36 $ 6.77 $ 4.95 $ 1.94 -------------------------------------------------------------------------------------------------------------------------------- Less distributions to shareholders from: -------------------------------------------------------------------------------------------------------------------------------- Net investment income $ (0.84) $ (0.75) $ (0.66) $ (0.28) $ (0.75) $ (0.12) Net realized gains (0.83) -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------------- Total distributions $ (1.67) $ (0.75) $ (0.66) $ (0.28) $ (0.75) $ (0.12) -------------------------------------------------------------------------------------------------------------------------------- Fund purchase and redemption fees added to paid-in- capital(b) $ 0.07 $ 0.05 $ 0.02 $ 0.05 $ 0.05 $ 0.03 -------------------------------------------------------------------------------------------------------------------------------- Net asset value -- End of period $ 53.23 $ 47.67 $ 31.60 $ 23.88 $ 17.34 $ 13.09 -------------------------------------------------------------------------------------------------------------------------------- Total Return(c) 15.16%(d) 53.79% 35.35% 39.46% 38.49% 17.71% -------------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data: -------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000's omitted) $1,423,782 $1,168,050 $557,634 $298,055 $160,752 $114,822 Ratio of total expenses to average net assets 0.95%(e) 0.95% 0.95% 0.95% 0.95% 1.01%(f) Ratio of net investment income to average net assets 0.77%(e) 1.80% 1.84% 1.99% 1.67% 2.33% Portfolio Turnover 3% 6% 9% 7% 12% 17% -------------------------------------------------------------------------------------------------------------------------------- (a) On February 6, 2004, the Fund acquired the net assets of PIMCO PPA Fund, a series of PIMCO Funds: Multi-Manager Series pursuant to a plan of reorganization approved by its shareholders. The financial statements of the Fund reflect the historical financial results of the PIMCO PPA Fund prior to its reorganization. (b) Per share amounts based on average shares outstanding during the period. (c) Returns are historical and calculated by determining the percentage change in net asset value with all distributions reinvested. (d) Not annualized. (e) Annualized. (f) Ratio of expenses to average net assets excluding tax and Trustees' expense is 0.95%. See notes to financial statements
Eaton Vance Tax-Managed Emerging Markets Fund as of December 31, 2007 NOTES TO FINANCIAL STATEMENTS (Unaudited) 1 Significant Accounting Policies ------------------------------------------------------------------------------- Eaton Vance Tax-Managed Emerging Markets Fund (the Fund) is a series of Eaton Vance Series Trust II (the Trust), a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund currently offers one class of shares, Class I, which are offered at net asset value and not subject to a sales charge. The Fund's investment objective is to seek long-term, after- tax returns for its shareholders. The Fund normally invests at least 80% of its net assets in equity securities of companies located in emerging market countries, which are those domiciled in or that derive more than 50% of their revenues or profits from emerging market countries. The following is a summary of significant accounting policies of the Fund. The policies are in conformity with accounting principles generally accepted in the United States of America. A Investment Valuation -- Equity securities that are listed on foreign or U.S. securities exchanges are valued at closing sale prices on the exchange where such securities are principally traded. Equity securities listed in the NASDAQ Global or Global Select Market are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices are not available are valued at the mean between the latest bid and asked prices or in the case of preferred equity securities that are not listed or traded in the over-the-counter market, by an independent pricing service. An option is valued at the last sale price as quoted on the principal exchange or board of trade on which such option or contract is traded, or in the absence of a sale, at the mean between the last bid and asked prices. Futures positions on securities or currencies are generally valued at closing settlement prices. Short-term debt securities with a remaining maturity of 60 days or less are valued at amortized cost. Other fixed income and debt securities, including listed securities and securities for which price quotations are available, will normally be valued on the basis of valuations furnished by a pricing service. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by an independent quotation service. The daily valuation of foreign securities generally is determined as of the close of trading on the principal exchange on which such securities trade. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange. When valuing foreign equity securities that meet certain criteria, the Trustees have approved the use of a fair value service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the securities held by the fund. The Fund may rely on an independent fair valuation service in adjusting the valuations of foreign equity securities. Investments held by the Fund for which valuations or market quotations are not readily available or determined to be unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees considering relevant factors, data and information including the market value of freely tradable securities of the same class in the principal market on which such securities are normally traded. B Income -- Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Fund is informed of the ex-dividend date. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Fund's understanding of the applicable countries' tax rules and rates. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount. C Federal Taxes -- The Fund's policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year all of its taxable income, and all or substantially all of its net realized gains. Accordingly, no provision for federal income or excise tax is necessary. In addition to the requirements of the Internal Revenue Code, the Fund may also be subject to capital gains taxes in certain countries in which it invests. In determining the daily net asset value, the Fund estimates the accrual for capital gains taxes, if any, based on the unrealized appreciation on certain Fund securities and the related tax rates. At December 31, 2007, the Fund had an accrual for capital gains taxes of $1,838,366 which is included in the change in net unrealized appreciation on investments in the Statement of Operations for the six months ended December 31, 2007. Capital gains taxes paid are included in net realized gain (loss) on investments in the Statement of Operations and were $99,931 for the six months ended December 31, 2007. In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48, ("FIN 48") "Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109." FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, "Accounting for Income Taxes." This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management has concluded that as of December 31, 2007, there are no uncertain tax positions that would require financial recognition, de-recognition, or disclosure. Each of the Fund's federal tax returns filed in the 3-year period ended December 31, 2007, remains subject to examination by the Internal Revenue Service. D Expenses -- The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses which are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and relative size of the funds. E Foreign Currency Translation -- Investment valuations, other assets, and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions. Recognized gains or losses on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net realized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed. F Redemption Fees -- Fund shares are subject to a redemption fee, at the time of exchange or redemption, equal to 2% of the net asset value of the shares exchanged or redeemed. This fee is not paid separately but is deducted automatically from the amount received in connection with a redemption or exchange. The redemption fee is retained by the Fund to defray the costs associated with the sale of portfolio securities to satisfy an exchange or redemption request. Shares acquired through the reinvestment of dividends and capital gains distributions paid to shareholders by the Fund are not subject to the redemption fee. Prior to April 1, 2005, Class I shares were subject to both a purchase fee, at the time of purchase, and a redemption fee, at the time of exchange or redemption, equal to 1% of the net asset value of the shares purchased, exchanged or redeemed. Shareholders that held shares on March 31, 2005 are subject to only the 1% redemption fee on the sale or exchange of those shares because they paid the 1% purchase fee at the time those shares were purchased. Shareholders that purchased shares of the PIMCO PPA on or before June 30, 1998 and exchanged those shares for shares of the Fund in the February 6, 2004 merger of the Predecessor Fund into the Fund are not subject to the redemption fee on the sale or exchange of those shares. G Repurchase Agreements -- Under the terms of a repurchase agreement, the Fund's custodian takes possession of an underlying collateral security, the market value of which is at all times at least equal to the principal, including accrued interest, of the repurchase transaction. In the event of default or bankruptcy by the other party to the agreement, realization and/ or retention of the collateral by the Fund may be delayed or limited. H Use of Estimates -- The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. I Indemnifications -- Under the Trust's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Fund and shareholders are indemnified against personal liability for obligations of the Trust. Additionally, in the normal course of business, the Fund enters into agreements with service providers that may contain indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. J Forward Foreign Currency Exchange Contracts -- The Fund may enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. The Fund enters into forward contracts for hedging purposes as well as non-hedging purposes. The forward foreign currency exchange contract is adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded as unrealized until such time as the contract has been closed or offset by another contract with the same broker for the same settlement date and currency. Risks may arise upon entering these contracts from the potential inability of counterparties to meet the terms of their contracts and from movements in the value of a foreign currency relative to the U.S. dollar. K Other -- Investment transactions are accounted for on a trade date basis. Realized gains and losses are computed based on the specific identification of the securities sold. Dividends to shareholders are recorded on the ex- dividend date. L Interim Financial Statements -- The interim financial statements relating to December 31, 2007 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Fund's management reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements. 2 Distributions to Shareholders ------------------------------------------------------------------------------- It is the present policy of the Fund to make at least one distribution annually (normally in December) of all or substantially all of its net investment income, and at least one distribution annually of all or substantially all of its realized capital gains (reduced by available capital loss carryforwards from prior years, if any). Shareholders may reinvest all distributions in additional shares of the Fund at the net asset value as of the ex-dividend date or, at the election of the shareholders, receive distributions in cash. The Fund distinguishes between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid- in-capital. 3 Investment Adviser Fee and Other Transactions with Affiliates ------------------------------------------------------------------------------- Under the terms of its investment advisory agreement with Eaton Vance Management (EVM), the Fund pays EVM a monthly advisory fee equal to an annual rate of 0.45% of the Fund's average daily net assets. For the six months ended December 31, 2007, the advisory fee earned by EVM amounted to $2,936,644. Pursuant to a sub-advisory agreement, EVM pays a monthly sub- advisory fee to Parametric Portfolio Associates, an indirect, majority-owned subsidiary of EVM equal to an annual rate of 0.35% of the Fund's average daily net assets. EVM also serves as administrator to the Fund and receives from the Fund a monthly administration fee equal to an annual rate of 0.50% of the Fund's average daily net assets. The administration fee covers Trustees fees and most third party expenses, excluding taxes, interest and extraordinary expenses. For the six months ended December 31, 2007, the Fund paid $3,262,938 for administrative services to EVM. EVM also serves as the sub-transfer agent to the Fund, at no additional cost to the Fund. Except for Trustees if the Funds who are not members of EVM's organization, officers, and Trustees receive remuneration for their services to the Funds out of the investment adviser fee. Certain officers and one Trustee of the Funds are officers of EVM. Certain officers and Trustees of the Fund are officers of EVM or Parametric Portfolio Associates. The Fund did not pay any Trustees fees for the six months ended December 31, 2007. 4 Purchases and Sales of Investments ------------------------------------------------------------------------------- Purchases and sales of investments, other than short-term obligations, aggregated $141,444,226 and $40,725,100, respectively, for the six months ended December 31, 2007. 5 Shares of Beneficial Interest ------------------------------------------------------------------------------- The Fund's Declaration of Trust permits the Trustees to issues an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in Fund shares were as follows: Six Months Ended December 31, 2007 Year Ended (Unaudited) June 30, 2007 -------------------------------------------------------------------------- Sales 4,047,322 8,383,950 Reinvestments 624,706 305,817 Redemptions (2,429,004) (1,834,139) -------------------------------------------------------------------------- Net increase 2,243,024 6,855,628 -------------------------------------------------------------------------- For the period ended December 31, 2007 and for the year ended June 30, 2007, the Fund received $1,687,416 and $995,835, respectively, in redemption fees. 6 Federal Income Tax Basis of Unrealized Appreciation (Depreciation) ------------------------------------------------------------------------------- The cost and unrealized appreciation (depreciation) of investments of the Fund at December 31, 2007, as determined on a federal income tax basis, were as follows: Aggregate Cost $746,331,016 -------------------------------------------------------------------------- Gross unrealized appreciation 685,980,633 Gross unrealized depreciation (13,169,885) -------------------------------------------------------------------------- Net unrealized appreciation $672,810,748 -------------------------------------------------------------------------- The net unrealized depreciation on foreign currency at December 31, 2007 on a federal income tax basis was $71,435. 7 Financial Instruments ------------------------------------------------------------------------------- The Fund may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities to assist in managing exposure to various market risks. These financial instruments include forward foreign currency exchange contracts and futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment the Fund has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. At December 31, 2007, there were no obligations outstanding under these financial instruments. 8 Risks Associated with Foreign Investments ------------------------------------------------------------------------------- Investing in securities issued by companies whose principal business activities are outside the United States may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitation on the removal of funds or other assets of the Fund, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers (particularly those in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the United States. 9 Recently Issued Accounting Pronouncements ------------------------------------------------------------------------------- In September 2006, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards No. 157, ("FAS 157") "Fair Value Measurements". FAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. As of December 31, 2007, management does not believe the adoption of FAS 157 will impact the amounts reported in the financial statements; however, additional disclosures may be required about the inputs used to develop the measurements of fair value and the effect of certain of the measurements on changes in net assets for the period. Eaton Vance Tax-Managed Emerging Markets Fund BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT OVERVIEW OF THE CONTRACT REVIEW PROCESS The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund's board of trustees, including by a vote of a majority of the trustees who are not "interested persons" of the fund ("Independent Trustees"), cast in person at a meeting called for the purpose of considering such approval. At a meeting of the Boards of Trustees (each a "Board") of the Eaton Vance group of mutual funds (the "Eaton Vance Funds") held on April 23, 2007, the Board, including a majority of the Independent Trustees, voted to approve continuation of existing advisory and sub-advisory agreements for the Eaton Vance Funds for an additional one-year period. In voting its approval, the Board relied upon the affirmative recommendation of the Special Committee of the Board, which is a committee comprised exclusively of Independent Trustees. Prior to making its recommendation, the Special Committee reviewed information furnished for a series of meetings of the Special Committee held in February, March and April 2007. Such information included, among other things, the following: Information about Fees, Performance and Expenses o An independent report comparing the advisory and related fees paid by each fund with fees paid by comparable funds; o An independent report comparing each fund's total expense ratio and its components to comparable funds; o An independent report comparing the investment performance of each fund to the investment performance of comparable funds over various time periods; o Data regarding investment performance in comparison to relevant peer groups of funds and appropriate indices; o Comparative information concerning fees charged by each adviser for managing other mutual funds and institutional accounts using investment strategies and techniques similar to those used in managing the fund; o Profitability analyses for each adviser with respect to each fund; Information about Portfolio Management o Descriptions of the investment management services provided to each fund, including the investment strategies and processes employed; o Information concerning the allocation of brokerage and the benefits received by each adviser as a result of brokerage allocation, including information concerning the acquisition of research through "soft dollar" benefits received in connection with the funds' brokerage, and the implementation of a soft dollar reimbursement program established with respect to the funds; o Data relating to portfolio turnover rates of each fund; o The procedures and processes used to determine the fair value of fund assets and actions taken to monitor and test the effectiveness of such procedures and processes; Information about each Adviser o Reports detailing the financial results and condition of each adviser; o Descriptions of the qualifications, education and experience of the individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and information relating to their compensation and responsibilities with respect to managing other mutual funds and investment accounts; o Copies of the Codes of Ethics of each adviser and its affiliates, together with information relating to compliance with and the administration of such codes; o Copies of or descriptions of each adviser's proxy voting policies and procedures; o Information concerning the resources devoted to compliance efforts undertaken by each adviser and its affiliates on behalf of the funds (including descriptions of various compliance programs) and their record of compliance with investment policies and restrictions, including policies with respect to market-timing, late trading and selective portfolio disclosure, and with policies on personal securities transactions; o Descriptions of the business continuity and disaster recovery plans of each adviser and its affiliates; Other Relevant Information o Information concerning the nature, cost and character of the administrative and other non-investment management services provided by Eaton Vance Management and its affiliates; o Information concerning management of the relationship with the custodian, subcustodians and fund accountants by each adviser or the funds' administrator; and o The terms of each advisory agreement. In addition to the information identified above, the Special Committee considered information provided from time to time by each adviser throughout the year at meetings of the Board and its committees. Over the course of the twelve-month period ended April 30, 2007, the Board met eleven times and the Special Committee, the Audit Committee and the Governance Committee, each of which is a Committee comprised solely of Independent Trustees, met thirteen, fourteen and nine times, respectively. At such meetings, the Trustees received, among other things, presentations by the portfolio managers and other investment professionals of each adviser relating to the investment performance of each fund and the investment strategies used in pursuing the fund's investment objective. For funds that invest through one or more underlying portfolios, the Board considered similar information about the portfolio(s) when considering the approval of advisory agreements. In addition, in cases where the fund's investment adviser has engaged a sub-adviser, the Board considered similar information about the sub-adviser when considering the approval of any sub- advisory agreement. The Special Committee was assisted throughout the contract review process by Goodwin Procter LLP, legal counsel for the Independent Trustees. The members of the Special Committee relied upon the advice of such counsel and their own business judgment in determining the material factors to be considered in evaluating each advisory and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each advisory and sub-advisory agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Special Committee may have placed varying emphasis on particular factors in reaching conclusions with respect to each advisory and sub-advisory agreement. RESULTS OF THE PROCESS Based on its consideration of the foregoing, and such other information as it deemed relevant, including the factors and conclusions described below, the Special Committee concluded that the continuance of the investment advisory agreement of the Eaton Vance Tax-Managed Emerging Markets Fund (the "Fund") with Eaton Vance Management (the "Adviser"), and the sub-advisory agreement with Parametric Portfolio Associates (the "Sub-adviser"), including their fee structures, is in the interests of shareholders and, therefore, the Special Committee recommended to the Board approval of the respective agreements. The Board accepted the recommendation of the Special Committee as well as the factors considered and conclusions reached by the Special Committee with respect to the agreement. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the advisory agreement and sub-advisory agreement for the Fund. NATURE, EXTENT AND QUALITY OF SERVICES In considering whether to approve the investment advisory agreement and sub- advisory agreement of the Fund, the Board evaluated the nature, extent and quality of services provided to the Fund by the Adviser and the Sub-adviser. The Board considered the Adviser's and Sub-adviser's management capabilities and investment process with respect to the types of investments held by the Fund, including the education, experience and number of its investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Fund and whose responsibilities include supervising the Sub-adviser. The Board evaluated the abilities and experience of such investment personnel in analyzing factors such as special considerations relevant to investing in emerging markets. The Board noted the Adviser's in-house equity research capabilities and experience in managing funds that seek to maximize after-tax returns. The Board also took into account the resources dedicated to portfolio management and other services, including the compensation paid to recruit and retain investment personnel, and the time and attention devoted to the Fund by senior management. With respect to the Sub-adviser, the Board took into account the resources available to the Sub-adviser in fulfilling its duties under the sub-advisory agreement and the Sub-adviser's experience in managing equity portfolios. The Board reviewed the compliance programs of the Adviser and relevant affiliates thereof, including the Sub-adviser. Among other matters, the Board considered compliance and reporting matters relating to personal trading by investment personnel, selective disclosure of portfolio holdings, late trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also evaluated the responses of the Adviser and its affiliates to requests from regulatory authorities such as the Securities and Exchange Commission and the National Association of Securities Dealers. The Board considered shareholder and other administrative services provided or managed by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large family of funds, including the ability, in many cases, to exchange an investment among different funds without incurring additional sales charges. After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services provided by the Adviser and Sub-adviser, taken as a whole, are appropriate and consistent with the terms of the investment advisory and sub-advisory agreements, respectively. FUND PERFORMANCE The Board compared the Fund's investment performance to a relevant universe of similarly managed funds identified by an independent data provider and appropriate benchmark indices. The Board reviewed comparative performance data for the one-, three- and five-year periods ended September 30, 2006 for the Fund. On the basis of the foregoing and other relevant information, the Board concluded that the performance of the Fund is satisfactory. MANAGEMENT FEES AND EXPENSES The Board reviewed contractual investment advisory fee rates, including any administrative fee rates, payable by the Fund (referred to as "management fees"). As part of its review, the Board considered the Fund's management fees and total expense ratio for the one-year period ended September 30, 2006, as compared to a group of similarly managed funds selected by an independent data provider. After reviewing the foregoing information, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded with respect to the Fund that the management fees charged to the Fund for advisory and related services and the total expense ratio of the Fund are reasonable. PROFITABILITY The Board reviewed the level of profits realized by the Adviser and relevant affiliates thereof, including the Sub-adviser, in providing investment advisory and administrative services to the Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized without regard to revenue sharing or other payments by the Adviser and its affiliates to third parties in respect of distribution services. The Board also considered other direct or indirect benefits received by the Adviser and its affiliates in connection with its relationship with the Fund, including the benefits of research services that may be available to the Adviser or Sub-adviser as a result of securities transactions effected for the Fund and other investment advisory clients. The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates, including the Sub-adviser, are reasonable. ECONOMIES OF SCALE In reviewing management fees and profitability, the Board also considered the extent to which the Adviser and its affiliates, including the Sub-adviser, on the one hand, and the Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from the economies of scale with respect to the management of any specific fund or group of funds. The Board reviewed data summarizing the increases and decreases in the assets of the Fund and of all Eaton Vance Funds as a group over various time periods, and evaluated the extent to which the total expense ratio of the Fund and the profitability of the Adviser and its affiliates, including the Sub-adviser, may have been affected by such increases or decreases. Based upon the foregoing, the Board concluded that the benefits from economies of scale are currently being shared equitably by the Adviser and its affiliates, including the Sub-adviser, and the Fund. The Board also concluded that assuming reasonably foreseeable increase in the assets of the Fund, the Adviser and its affiliates, including the Sub-adviser, and the Fund can be expected to continue to share such benefits equitably. Eaton Vance Tax-Managed Emerging Markets Fund as of December 31, 2007 INVESTMENT MANAGEMENT Officers Trustees MICHAEL W. WEILHEIMER RALPH F. VERNI President Chairman THOMAS P. HUGGINS BENJAMIN C. ESTY Vice President THOMAS E. FAUST JR. THOMAS SETO Vice President ALLEN R. FREEDMAN DAVID M. STEIN WILLIAM H. PARK Vice President RONALD A. PEARLMAN BARBARA E. CAMPBELL Treasurer NORTON H. REAMER PAUL M. O'NEIL HEIDI L. STEIGER Chief Compliance Officer LYNN A. STOUT JOHN E. PELLETIER Chief Legal Officer MAUREEN A. GEMMA Secretary INVESTMENT ADVISER OF EATON VANCE TAX-MANAGED EMERGING MARKETS FUND EATON VANCE MANAGEMENT The Eaton Vance Building 255 State Street Boston, MA 02109 SUB-ADVISER OF EATON VANCE TAX-MANAGED EMERGING MARKETS FUND PARAMETRIC PORTFOLIO ASSOCIATES 1151 Fairview Avenue N. Seattle, WA 98109 ADMINISTRATOR OF EATON VANCE TAX-MANAGED EMERGING MARKETS FUND EATON VANCE MANAGEMENT The Eaton Vance Building 255 State Street Boston, MA 02109 PRINCIPAL UNDERWRITER EATON VANCE DISTRIBUTORS, INC. The Eaton Vance Building 255 State Street Boston, MA 02109 (617) 482-8260 CUSTODIAN STATE STREET BANK AND TRUST CO. 225 Franklin Street Boston, MA 02110 TRANSFER AGENT PFPC INC. Attn: Eaton Vance Funds P.O. Box 9653 Providence, RI 02940-9653 (800) 262-1122 EATON VANCE TAX-MANAGED EMERGING MARKETS FUND THE EATON VANCE BUILDING 255 STATE STREET BOSTON, MA 02109 2050-2/08 TMEMSRC ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the Vice Chairman of Commercial Industrial Finance Corp (specialty finance company). Previously, he served as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm) and as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Reamer is the President, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company). Formerly, Mr. Reamer was Chairman and Chief Operating Officer of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not required in this filing. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. No Material Changes. ITEM 11. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no changes in the registrant's internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Eaton Vance Series Trust II By: /s/ Michael W. Weilheimer ---------------------------- Michael W. Weilheimer President Date: February 12, 2008 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Barbara E. Campbell ---------------------------- Barbara E. Campbell Treasurer Date: February 12, 2008 By: /s/ Michael W. Weilheimer ---------------------------- Michael W. Weilheimer President Date: February 12, 2008